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Energy giant BP locked out more than 800 union workers on Thursday at its refinery in Whiting, Indiana \u2014 the largest inland refinery in the U.S.<\/p>\n
The lockout comes after BP and the workers\u2019 union, United Steelworkers Local 7-1, failed to reach a contract agreement on Tuesday. <\/p>\n
\u201cWe presented British Petroleum with an offer [Tuesday] that included accepting several of their proposals \u2014 only for them to reject that after just four hours and serve us with a lockout notice,\u201d Eric Schultz, president of USW Local 7-1, said on Tuesday. \u201cThey continue to demand that we cut more than 100 jobs, accept pay cuts to nearly all positions and give up our bargaining rights.\u201d<\/p>\n
Contract negotiations started earlier this year, after the current contract expired Jan. 31.<\/p>\n
\u201cThe decision to lockout was not made lightly,\u201d BP said in a Tuesday statement. \u201cIt was made after months of negotiations and great consideration. However, the union has not accepted the company\u2019s contract proposals that are most critical to the long-term sustainability of the refinery. In fact, the union has unequivocally rejected our company proposals twice now without offering a counter that addresses any of the company\u2019s concerns.\u201d<\/p>\n
Union leadership has denied BP\u2019s claims and said their response to the company\u2019s final offer accepted several of the proposals.<\/p>\n
BP issued a revised offer to the union on Mar. 13 \u2014 a day after the union rejected BP\u2019s \u201clast, best and final offer\u201d \u2014 that was a six-year agreement with plans for job restructuring that would affect 20% of employees. The lump sum consideration was also reduced from $7,500 to $2,500, with the lump sums ranging from $2,500 to $10,000. BP plans to move the \u201cmaintenance non-core craft lines work\u201d to specialized contractors, which they said is \u201ca common practice in the industry.\u201d The company said examples of the work include heating, ventilation, air conditioning services and scaffold building.<\/p>\n
The United Steelworkers said in a statement at the time that the revised contract included limiting the union\u2019s ability to strike and removing its bargaining rights, base wage cuts across positions and ending seniority protections in case of layoffs.<\/p>\n
\u201cWhile the company\u2019s original proposal included a potential elimination of 200 union jobs, with 100 of those being transferred to salaried BP employees, we have since withdrawn the proposal to transfer 100 of those roles to salaried positions as negotiated with the union,\u201d a company spokesperson said on Thursday.<\/p>\n
Workers began picketing in Whiting, about 20 miles south of Chicago, at 12:00 a.m. on Thursday just after the lockout took effect. Access cards for some workers were deactivated as early as Wednesday morning, according to the union.<\/p>\n
BP said Thursday that most employee benefits would be inactive during the lockout. Some benefits \u2014 like life insurance and health care \u2014 can be continued if the union employee pays invoices directly. <\/p>\n
The union must accept the Mar. 17 contract proposal to end the lockout, BP said.<\/p>\n
Other non-union \u201cqualified and highly skilled\u201d BP employees will operate the refinery, and mechanical contractors will \u201csupport any necessary maintenance,\u201d the company said. It said about 450 employees are currently on site, and there are approximately 100 contractors providing support for its operations.<\/p>\n