BP will block around 800 workers from its 440,000-barrel-per-day Whiting, Indiana, refinery starting March 19, the British oil major said as months of contract negotiations yielded little results.
Key takeaways: BP Whiting refinery lockout
- Lockout Initiated: BP is blocking approximately 800 unionized workers (represented by United Steelworkers) from its Whiting, Indiana, refinery starting March 19 after contract negotiations stalled.
- Operational Security: BP claims the lockout is necessary to regain "operational control" and ensure safety amid labor uncertainty, while the union argues the company is demanding unacceptable job and pay cuts.
- Market Impact: As the Midwest's largest refinery, any disruption at the 440,000 barrel-per-day facility could further tighten fuel markets and drive up prices for gasoline and diesel.
The labor dispute at Whiting, the largest refinery in the Midwest, came at a time of high gasoline and diesel prices as the Middle East war upends global energy supplies. Any operational disruptions could exacerbate an already tight fuel market, sending prices even higher.
The United Steelworkers (USW) union represents about 800 workers at the Whiting refinery that produces key transportation fuels, including gasoline, diesel fuel and jet fuel.
BP on Tuesday issued a lockout notice after the United Steelworkers-represented workers rejected its "last, best and final" offer. It told maintenance workers at the Whiting plant not to report for work after Tuesday, and other union-represented workers to work through March 18.
BP said the decision to impose a lockout followed months of negotiations during which the union twice rejected key proposals without addressing BP's primary concerns. It noted it would continue bargaining in good faith, but lifting the lockout would require the union's acceptance of its latest proposal.
Since the previous three-year collective bargaining agreement expired on January 31, the company said it has been operating amid "labor uncertainty," including the possibility of a strike with as little as 24 hours' notice, and regaining operational control was vital to ensure a safe and orderly transfer of refinery management.
Last week, BP presented a revised contract offer after union members overwhelmingly rejected the company's final proposal.
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"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," said Eric Schultz, president of USW Local 7-1, in an emailed statement. "We are prepared to keep fighting for a fair agreement that protects local jobs, protects wages, and protects the rights of our members."
The union had said BP proposed workplace changes, including cutting more than 200 union jobs in operations, maintenance, and environmental safety, as well as stripping away some workplace protections.
