Negotiations between BP and the United Steelworkers Local 7-1 over a new contract for more than 800 union workers at the Whiting Refinery in Lake County have reached a critical point.
The oil giant announced that it plans to initiate a lockout of union workers beginning Thursday morning, adding that negotiations will continue according to Inside INdiana Business.
BP and union members have been at odds over a new contract since January.
The union claims BP’s proposal would result in the elimination or outsourcing of more than 100 union jobs, cutting base wages across nearly all job classifications, stripping the union of bargaining rights, limiting the union’s ability to strike, and ending seniority protections for layoffs.
Last Thursday, BP presented its “last, best and final” contract offer, which the company said included a 13% wage increase over four years and was overwhelmingly rejected by union members.
Chris DellaFranco, manager of the BP Whiting Refinery, said in a video message Tuesday that the company provided a revised comprehensive proposal dated March 17, which also came with notice of the lockout.
“We made this difficult decision after months of negotiations in great consideration,” DellaFranco said. “However, the union has not meaningfully negotiated about the company contract proposals that are critical to the long term sustainability of the refinery. In fact, the union has unequivocally rejected company proposals twice now, without offering a counter that addresses our concerns.”
The previous union contract expired on Jan. 31, and the two sides had agreed to rolling 24-hour extensions of the agreement for refinery workers. BP said it also provided notice to cancel that agreement.
USW Local 7-1 President Eric Schultz issued the following statement Tuesday:
“We presented British Petroleum with an offer today that included accepting several of their proposals — only for them to reject that after just four hours and serve us with a lockout notice,” Schultz said. “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. We are prepared to keep fighting for a fair agreement that protects local jobs, protects wages and protects the rights of our members.”
The lockout is slated to begin at 12 a.m. on Thursday. BP said on its website that USW represented maintenance employees should not report to work after March 17, and anyone scheduled to work on March 18 would be paid per that schedule.
All other USW-represented employees scheduled to work the evening of March 17 and on all shifts on March 18 are being told to report as scheduled.
During the lockout, BP said it has a team of qualified employees who will “operate the refinery safely and in compliance with regulatory requirements,” and the company does not anticipate any disruptions to operations or production.
“Our main priority remains the safety of our people and the community by maintaining operational stability of the refinery,” DellaFranco said. “I want to assure the community that we have trained BP employees to run the refinery. They have prepared for over a year and have completed over 80,000 hours of training.”
DellaFranco said BP will continue to provide certain benefits, including medical coverage, for the union workers during the lockout, with more information expected to come on Wednesday.
In order to end the lockout, BP said the union must accept its revised March 17 proposal.
“While this lockout is a difficult decision in very challenging circumstances, the changes we are seeking are necessary to advance the safety and competitiveness of our refinery for decades to come,” he said.
Source: Inside INdiana Business
