By Nicole Jao NEW YORK, April 22 (Reuters) - A lockout at BP's 440,000-barrel-per-day refinery in Whiting, Indiana, enters its second month as the British oil major and hundreds of union workers
BP lockout at Indiana refinery stretches into second month as union talks stall
Stalled Negotiations and Ongoing Lockout at BP Whiting Refinery
By Nicole Jao
Background of the Lockout
NEW YORK, April 22 (Reuters) - A lockout at BP's 440,000-barrel-per-day refinery in Whiting, Indiana, enters its second month as contract talks between the British oil major and hundreds of union workers remain deadlocked.
BP barred about 800 workers represented by the United Steelworkers union on March 19, after months of negotiations failed to produce a new labor contract.
Significance of the Whiting Facility
The Whiting facility is the largest refinery in the Midwest and a major supplier of gasoline, diesel and jet fuel. It has continued to operate during the lockout after BP brought in temporary workers.
Current Status of Negotiations
BP said on Wednesday it has attempted twice since early April to return to negotiations with the union but did not receive a formal response.
"We are ready to resume bargaining," BP Whiting refinery manager Chris DellaFranco said in a video message posted on the company's website.
Disputed Job Cuts and Compensation
DellaFranco disputed the union's claim that the company's proposal would eliminate 100 union jobs. The company said approximately 65 positions would be affected and those workers would receive "generous compensation" under the new proposal.
Union's Response to BP's Proposal
The Steelworkers have previously accused BP of pressuring workers into accepting concessions. The union said they were informed by the company that the lockout would not be lifted unless workers accept BP’s demands, which include job cuts, wage reductions across most classifications and limits on collective bargaining rights.
"If they truly want to get back to the table, it’s simple: end the lockout and be willing to seriously negotiate a fair contract," Eric Schultz, president of USW Local 7-1, said in an emailed statement.
"Our members have been ready to bargain. We remain ready to bargain. The company has the power to end this dispute today," Schultz added.
Market Impact and Broader Implications
The lockout at Whiting came at a time of elevated gasoline and diesel prices as a major shipping route, the Strait of Hormuz, has remained effectively closed during the Iran war. Any prolonged operational disruptions could exacerbate an already tight fuel market, sending prices even higher.
(Reporting by Nicole Jao in New York, Anushree Mukherjee in Bengaluru; Editing by Rod Nickel and Will Dunham)
