The United Steelworkers (USW) local that represents workers at BP’s Whiting, Indiana refinery told employees to be ready for a strike or a lockout after weeks of bargaining failed to produce a deal, the union said on Thursday. The plant processes about 440,000 barrels per day.
Members of USW local 7-1 voted overwhelmingly to grant strike authorization, with 98% of the approximately 800 workers backing the move. The authorization does not automatically start a strike but gives the union leverage should it choose to walk away from the bargaining table.
Eric Schultz, president of USW 7-1, criticized BP’s negotiating stance. "BP has rejected almost all of our proposals with very little discussion," he said. Schultz added that the union intends to "continue to bargain in good faith and stand united in demanding a fair contract for all of our local union members."
According to the union, BP put forward workplace changes during negotiations that would cut more than 200 union jobs across operations, maintenance and environmental safety, and would remove certain workplace protections. Those proposed changes are a central point of contention in bargaining, the union said.
A BP spokesperson responded to the union’s characterization of the talks, saying, "Allegations that there has been little dialogue between BP and the union are inaccurate," and added that the company continues to focus on reaching an agreement with the union and avoiding a work stoppage.
The prior collective bargaining agreement for the Whiting refinery was in place for three years and expired on January 31. The facility is the largest refinery in the U.S. Midwest and supplies key transportation fuels, including gasoline, diesel fuel and jet fuel.
Industry note - The dispute has implications for regional fuel supply given the refinery’s scale and product slate, though the union and BP remain engaged in negotiations.
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