The United Steelworkers union announced Thursday that workers should prepare for a strike or lockout at the BP Whiting refinery.
According to a USW news release on Thursday, USW 7-1 member states approved the first transfer of funds from the Reserve Fund to the Strike and Defense Fund.
According to BP’s website, BP and the union began negotiating a new collective agreement on January 5, as the previous one expired at 11:59 p.m. on January 31. The union operated under a three-year agreement.
The parties were unable to reach an agreement by the deadline.
According to USW, the parties agreed to extend the agreement for refinery workers in 24-hour phases. Since then, the union has claimed that BP “has failed to extend contract extensions for pipeline employees across the Midwest, and negotiations have not made meaningful progress.”
“BP rejected nearly all of our proposals with little discussion,” USW 7-1 President Eric Schultz said in a news release. “We have heard from many of our members who are prepared to go on strike to move the company towards a fair deal, and this is not an option we take lightly. We will continue to bargain in good faith and stand together to demand a fair contract for all local union members.”
BP responded to the union’s intention to strike in a statement Thursday.
“We remain focused on reaching a fair and equitable agreement and avoiding work stoppages,” the statement said. “The assertion that there has been little dialogue between BP and the union is inaccurate. BP continues to negotiate in good faith with USW to improve the long-term competitiveness of its business and build a sustainable future for its employees, company and community. BP Whiting Refinery is committed to safe, compliant and efficient operations. We value our employees and their contributions.”
In preparation for a strike or lockout, the union is encouraging members to remove personal items from the workplace, schedule medical, dental and vision appointments, refill prescriptions for 90 days, and postpone major purchases or financial obligations until an agreement is reached.
USW claims BP’s proposal would “eviscerate the union” and require the union to give up many of its legal bargaining rights and allow union workers at the refinery to be tracked and monitored by artificial intelligence.
Ten years ago, USW went on strike for 99 days at 12 refineries across the country over concerns about safety, training and staffing. According to the union, BP had about 1,100 USW workers, but there are about 300 fewer members now at the refinery.
“We have seen firsthand the impact of the cuts that BP has made since the last contract and how they have affected operations,” Schultz said. “Our friends and neighbors in northwest Indiana are also experiencing the effects of these layoffs personally. We will not negotiate away safe workplaces and good, stable union jobs to advance BP’s profits.”
BP provided its first online update on January 8, saying its goal is for the refinery to remain safe and competitive for decades to come. The company did not specifically publish the 11 proposals online, but said they focused on three themes: safety, operational excellence and workforce optimization. Market competitiveness and cost efficiency. and future risk mitigation.
BP denied on its website that it was cutting 200 jobs from the refinery.
“The company has proposed reclassifying console operators as paid supervisory employees, which is common in the industry and will help improve safety,” the website states. “The company is also proposing to outsource non-core operations such as construction contractors and HVAC, consistent with practices at other U.S. refineries.”
BP has held 42 documented bargaining sessions with the union since Jan. 5, according to an email from a company spokesperson. The parties also met informally to discuss the proposals.
BP also trained a replacement workforce of current and former employees to ensure the refinery operates safely and compliantly in the event of a work stoppage, according to Thursday’s email.
BP last provided an update online about its current proposal on Tuesday, according to the company’s website. The company has provided regular updates online since negotiations began.
According to BP’s website, employees are not eligible for employee benefits if they are absent from work due to a strike or lockout. BP says they can continue to receive benefits through alternatives, including COBRA.
“While this may be a difficult message for our employees, it is consistent with the treatment of other union-represented employees who have gone on strike or been locked out at other refineries, chemical plants, and other petrochemical complexes,” the website says. “This also applies if unrepresented BP employees change to similar status. We encourage our employees to consider this information carefully and take necessary steps in the event of a strike or lockout.”
The latest information on negotiations from BP is available online at: whiteningnegotiation.com.
mwilkins@chicagotribune.com