BP, USW End Whiting, Ind., Refinery Contract Talks as Lockout Continues

Representatives of BP and the United Steelworkers union on Monday ended negotiations for a new labor contract at the 430,000 b/d Whiting, Ind., refinery with little progress toward ending the facility’s two-month-long lockout.

The oil major said it was disappointed that the local USW union chose to leave the bargaining table and was unwilling to resume discussions on items critical to the future of the refinery.

The union said in a statement it directly asked BP whether it would end the lockout without accepting the company’s last offer on March 17, and whether lockout members could return to work while negotiations continue.

BP refused to provide a direct answer, according to the union.

BP said its Whiting refinery can continue to negotiate during the lockout, and it is ready to do so. “However, we cannot return to operate under the prior agreement, which presented safety and operational risk,” the company said.

The oil major has maintained that the largest U.S. inland refinery cannot operate competitively and safely under the previous contract.

During the meeting that lasted for more than an hour, both sides discussed reviewing each other’s proposals and identifying the remaining issues.

Still, they appeared to remain far apart in agreeing with core issues over job security, compensations and other items.

BP said its last offer is designed to “modernize the agreement to support sustainable, reliable operations for the long term.”

While both BP and the union said they remain committed to negotiating in good faith, they did not discuss when they would meet next.

BP began the lockout on March 19 when its employees took over operations of the refinery. The company said it does not expect the lockout to disrupt its operations or production.

Both sides had been in talks since early January, a month before the USW reached a four-year national labor contract with dozens of other refineries.

Reporting by Frank Tang, ftang@opsinet.com; Editing by Michael Kelly, mkelly@opisnet.com