BP locks out union workers at its Midwest oil refinery BP (BP.L) announced on Tuesday it would block approximately 800 workers from its 440,000 barrel-per-day Whiting, Indiana, refinery starting March 19, marking the first step in a labor dispute that has stalled for months. The decision followed the rejection of BP’s final contract offer by the United Steelworkers (USW) union, which represents the affected workers. The lockout comes amid rising gasoline and diesel prices, as global energy markets face disruptions from the Middle East conflict. Any operational delays at the refinery, the largest in the Midwest, could worsen an already strained fuel supply, potentially driving prices higher. The Whiting refinery produces critical transportation fuels, including gasoline, diesel, and jet fuel. BP’s lockout notice stated that the company had engaged in months of negotiations, during which the union twice rejected key proposals without addressing BP’s primary concerns. The company emphasized its commitment to continuing bargaining in good faith but noted that lifting the lockout would require the union’s acceptance of its latest offer. Since the previous three-year collective bargaining agreement expired on January 31, BP has operated under “labor uncertainty,” including the risk of a strike with as little as 24 hours’ notice. Regaining operational control was described as essential to ensure a safe and orderly transition of refinery management. Last week, BP presented a revised contract offer after union members overwhelmingly rejected its previous proposal. Eric Schultz, president of USW Local 7-1, criticized the company’s demands, stating, “They continue to demand that we cut more than 100 jobs, accept pay cuts to nearly all positions and give up our bargaining rights. That’s just unacceptable.#middle_east_conflict #bp #whiting_indiana #united_steelworkers #usw_local_7_1
BP locks out more than 800 union workers at Whiting refinery after contract negotiations fail BP locked out over 800 union workers at its Whiting, Indiana refinery on Thursday, marking the largest inland refinery in the U.S. The move followed failed contract negotiations with the United Steelworkers Local 7-1, which the company claims rejected its proposals. BP stated the union must accept its March 17 contract offer to end the lockout, which has left most employee benefits inactive during the dispute. The union, represented by Eric Schultz, president of USW Local 7-1, accused BP of demanding significant concessions, including job cuts, pay reductions, and the loss of bargaining rights. Schultz criticized BP’s stance, stating the company rejected a proposal that accepted several of its demands after just four hours of discussion. The union denied BP’s claim that it had rejected the company’s proposals twice without offering counterpoints. Contract talks began earlier this year after the previous agreement expired on January 31. BP issued a revised six-year contract proposal on March 13, which included job restructuring affecting 20% of employees and reduced lump-sum compensation from $7,500 to $2,500. The company also planned to outsource maintenance tasks to specialized contractors, citing industry practices. The union condemned the revised offer, arguing it limited their ability to strike, removed bargaining rights, and imposed base wage cuts. Workers began picketing in Whiting, about 20 miles south of Chicago, at midnight on Thursday. Union members reported that access cards were deactivated as early as Wednesday, preventing entry to the facility. BP noted that approximately 450 non-union employees and 100 contractors would continue operating the refinery during the lockout.#chicago #bp #united_steelworkers_local_7_1 #whiting_indiana #eric_schultz
