BP on Tuesday said itwill lock out approximately 800 United Steelworkers members from its 440,000 barrel-per-day Whiting, Indiana, refinery starting at 12:00 a.m. on March 19, citing a breakdown in negotiations over a new labor agreement.
The British oil major ended its 24-hour rolling contract extension and issued a lockout notice after the union rejected proposals that BP considers essential for the facility’s long-term sustainability.
Maintenance employees were told not to report after March 17, while other USW-represented workers will report through March 18.
On Friday, BP presented a revised contract offer after union members overwhelmingly rejected what the company had called its “last, best and final” proposal.
“In today’s meeting, the Union offered a slightly revised proposal, but once again unequivocally rejected the Company’s proposals that are critical to the long-term sustainability of the Refinery,” BP said in a statement.
United Steelworkers was not immediately available for comment.
The company noted it would continue bargaining in good faith, but lifting the lockout would require the union’s acceptance of its March 17 proposal.
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.
Since February 1, 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.
The stakes at Whiting are high, as any operational disruptions could exacerbate an already tight global refined-products market, raising supply concerns across the Midwest and potentially beyond.
U.S. gasoline and diesel costs have been rising as global fuel markets continue to reel from supply disruptions linked to the Middle East war.
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.
The previous three-year collective bargaining agreement expired on January 31.
The Whiting refinery produces transportation fuels including gasoline, diesel fuel and jet fuel.
(Reporting by Anmol Choubey and Nicole Jao; Editing by Chris Reese)