bp Whiting refinery returned to the bargaining table prepared to continue good-faith negotiations with the United Steelworkers (USW) Local 7-1.
We were hopeful for productive conversations, and are disappointed that the union chose to leave the bargaining table without meaningfully engaging on the issues that remain unresolved.
During the meeting, the USW again requested that bp Whiting refinery lift the lockout, but were still unwilling to resume meaningful discussions on items critical to the future of the refinery. bp Whiting refinery can continue to negotiate during the lockout, and we remain ready to do so. However, we cannot return to operating under the prior agreement, which presented safety and operational risk.
bp Whiting refinery's proposal is designed to modernize the agreement to support sustainable, reliable operations for the long term. It includes:
- Modernized job structures and enhanced training and upskilling;
- A six-year agreement, a $2,500 lump sum bonus following ratification;
- Additional lump sum payments of $5,000 to $7,500 for certain classifications;
- Market-competitive base wage increases – average of 13% over 4 years
- An annual cash bonus opportunity;
- Simplified local work rules; and
- A 150-day notice requirement for any intent to strike or lockout following contract expiration.
For background:
- Negotiations began on January 5. The incumbent contract expired on January 31, and bp Whiting refinery continued bargaining while agreeing to 24-hour contract extensions.
- The parties engaged in more than 60 face-to-face discussions, but, nevertheless, the USW rejected and refused to negotiate bp Whiting refinery's last, best, and final offer.
- Since February 1, the Whiting refinery operated in a continued state of labor uncertainty and under the threat of a strike with only 24 hours' notice.
- It was vital to our employees and our community that bp controlled the timeline to allow a safe and orderly transfer of operations, so bp Whiting refinery initiated the lockout on March 19.
For nearly two months after the lockout began, the USW refused to engage beyond proposing a return to work under the old agreement without resolving outstanding issues. The Whiting refinery's highly skilled workforce continues to operate safely, reliably, and compliantly. There are no current impacts to operations.
bp Whiting refinery remains a significant contributor to Northwest Indiana and the state, with more than 2,700 bp Whiting refinery employees in Indiana, more than 97,000 jobs supported in Indiana, more than $1 billion spent annually with vendors at Whiting, more than $48 million in state and local taxes paid, and more than $3.5 million in community investment since 2020.
We remain committed to bargaining in good faith for sustainable, reliable operations for the long term and bringing employees back once an agreement is reached. bp Whiting refinery will continue to be present and negotiate in good faith, and we hope the union will return to join us for the benefit of our employees, the refinery, and the Northwest Indiana community.
