BP, United Steelworkers negotiations continue after strike preparations at BP Whiting refinery
Published in Business News
GARY, Indiana — An agreement still has not been reached nearly one week after the United Steelworkers union announced it was prepared for a strike or lockout at the BP Whiting, Indiana, refinery.
The groups are expected to continue negotiations.
The USW, on Feb. 6, reached an agreement with Marathon for a four-year national pattern, which covers about 30,000 union oil workers for dozens of employers, according to a union news release. The affected workers are represented through the USW National Oil Bargaining Program, and they work in more than 200 units that include refining, production, pipelines, maintenance storage, petrochemical and renewable facilities.
BP responded to the agreement in a Feb. 6 statement.
“We are aware that the USW Policy committee voted to approve Marathon’s offer,” the statement said. “Regardless of what was agreed upon at the national level between Marathon and the international USW, the Whiting Refinery is, in no way, obligated to follow the ‘pattern.’ We will continue to bargain in the best interests of our employees, our company and the community.”
BP plans to pursue a longer-term contract of six years and has proposed wage percentage increases consistent with the National Oil Bargaining Program pattern, according to a company update.
Eric Schultz, president of USW 7-1, said in a Wednesday statement that BP maintains that they have no plans to honor the National Oil Bargaining Program, claiming this is the first time that’s happened.
“We’ve spent most of our negotiations discussing BP’s concessionary proposals that would eliminate local jobs, reduce pay across the board and strip us of bargaining rights,” Schultz’s statement said. “We will continue to operate in good faith.”
On Wednesday, BP posted an update on its bargaining website, saying the company issued a comprehensive offer and explained what it is.
According to the company, a comprehensive offer is common in negotiations, and it represents proposals that have been discussed and sometimes tentatively agreed upon, and “items that are open but not yet agreed upon.”
“The Whiting Refinery issued a comprehensive offer, which included proposals that have been tentatively agreed upon and those are very important to the future of the refinery and that have been extensively bargained since the start of negotiations on (Jan. 5) but remain open,” the company update said. “This does not represent the conclusion of negotiations but is an important step in signaling progress.”
On Jan. 5, BP and the union started negotiations for a new collective bargaining agreement, according to Post-Tribune archives. The previous agreement expired at 11:59 p.m. Jan. 31, and the two parties couldn’t reach an agreement by deadline.
Both parties have since agreed to rolling 24-hour extensions of the agreement for Whiting refinery workers. The USW is prepared to strike in order to move toward a fair agreement, the union announced last week.
No update on a strike or lockout has been given since its Feb. 5 announcement.
In preparation of a strike or lockout, the union encourages members to remove personal belongings from the workplace, schedule any medical, dental or vision appointments, refill prescriptions with 90-day supplies and postpone major purchases or financial obligations until an agreement is reached.
According to the BP website, if employees are absent from work because of a strike or lockout, they will not be eligible for employee benefits. They can still receive benefits through alternative means, according to BP, including COBRA.
The USW claims that BP’s proposal would “gut the union,” alleging that they asked the union to waive many of their legal bargaining rights and allow for tracking and artificial intelligence surveillance of the refinery’s union employees. The union also claims that BP has rejected its proposals with little discussion.
“We remain focused on reaching a fair and equitable agreement and avoiding a work stoppage,” a previous BP statement said. “Allegations that there has been little dialogue between BP and the union are inaccurate. BP continues to bargain in good faith with the USW to improve the long-term competitiveness of our business and create a sustainable future for our workforce, company and community. The BP Whiting Refinery is committed to safe, compliant, and efficient operations. We value our employees and their contributions.”
The company has held 42 documented bargaining sessions with the union since Jan. 5, according to an email from its spokesperson. The parties have also met in informal settings to discuss the proposals.
BP has also trained replacement workers, consisting of current and former employees, to operate the refinery safely and in compliance with regulations if a work stoppage occurs, according to a Thursday email.
Negotiations updates from BP are available online at whitingnegotiations.com.
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