Phillips 66 has barred nearly 400 union workers from its Bayway refinery in Linden, New Jersey, after the collective bargaining agreement and an extension of the contract expired.
The labor dispute at Bayway, the largest refinery on the U.S. East Coast, comes as gasoline and diesel prices remain elevated amid disruptions to global energy supplies from conflicts in the Middle East and Russia. Any operational disruptions could further tighten fuel markets and drive prices higher.
“In the absence of a further extension and to meet our commitment to safe and reliable operations, Phillips 66 has now locked out union-represented employees at those facilities,” Phillips 66 said in a statement on Tuesday, adding that it plans to maintain safe operations at the Bayway oil refinery and Linden terminal with trained personnel to continue to meet market demands.
The current collective bargaining agreement with union-represented employees at the Bayway refinery and Linden terminal expired on October 1. The contract extension expired on October 19.
About 385 workers were locked out after the union rejected the company’s latest contract offer, Teamsters Local 877 said in a social media post on Monday. Phillips 66’s proposal included concessions on wages, healthcare and safety protections, the union said.
Union representatives did not immediately respond to Reuters’ request for comment.
The Bayway refinery is capable of processing about 275,000 barrels per day of crude oil. The facility produces a high percentage of transportation fuels including gasoline and diesel for the region.
The labor dispute follows a 7-month long lockout at BP’s Whiting refinery, the largest in the Midwest.
(Reporting by Nicole Jao in New York; Editing by Chizu Nomiyama )