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Negotiations to resume after 7-month lockout at BP Whiting refinery
It’s been seven months since 800 workers were locked out of BP’s Whiting refinery. Now, negotiations are expected to resume Monday.
WHITING, Ind. - For seven months, locked-out workers at BP’s Whiting Refinery have been fighting to get back to work.
Now, as their savings dwindle and the holidays approach, they’re facing another battle: a challenge to the unemployment benefits many have relied on to help make ends meet.
BP Refinery lockout
The backstory:
"We are not on strike. We have been locked out of our jobs. We have been trying to get back inside as long as we've been out here," said Aaron Harris, a process operator who has worked at BP for eight years.
Harris said the lockout has taken a toll on workers’ families, forcing some to take outside jobs and rely on help from their union and the community.
"Stress is an understatement when you have a certain quality of life and you get used to living a certain way and it's all snatched away from you," Harris said.
Justin Henley, a chief operator who has worked at BP for 17 years, said he’s piecing together side jobs to support his wife and two sons.
"Money is going to get real tight around the holidays. You know, not going to be able to buy all the stuff we used to; kids, it's going to be rough on them," Henley said.
What’s at the center of the contract dispute?
BP says it wants a ratified contract that brings workers back while protecting the refinery’s long-term future. Its proposal includes an average 13% pay increase over the first four years, a $2,500 ratification bonus and additional payments for employees in certain roles.
But the proposal also includes changes to job structures and training, a six-year contract and shifting certain work to qualified outside service providers. BP says that change would affect about 65 union-represented employees, with many eligible for a payment equal to one year of base pay.
In a video explaining the company’s proposal, BP’s refinery manager, Chris Telefranco, said the goal is to use technology to improve safety and efficiency.
"And to be clear, it's not about taking you out of the equation. It's about giving you more and better resources to do your job safely and keeping Whiting competitive for the long term as technology advances," said Telefranco.
The union argues the proposed changes come with significant concessions, including changes to job classifications and the potential for major job losses. Workers also say the company has not meaningfully moved off its initial proposal during negotiations.
"They have not bargained in good faith, not one time this entire time," Harris said, arguing workers have been asked to compromise without getting enough in return.
Henley believes the dispute is about more than a contract.
"I believe they're trying to break the union. I 100% believe that," he said.
BP has said it remains committed to reaching an agreement and getting employees back to work.
Why unemployment benefits are another battleground
The lockout has also led to a fight over unemployment compensation.
University of Illinois labor studies professor Robert Bruno said the distinction between a strike and a lockout is important. In a strike, workers choose to withhold their labor. In a lockout, the employer prevents workers from working while contract negotiations continue.
That distinction helped workers make the case for unemployment benefits in Indiana. BP is now challenging that eligibility, putting benefits workers have received at issue.
If the company prevails, workers could face repayment obligations depending on the outcome of the case.
Bruno said losing that financial support could make an already difficult situation even worse.
"This is a very difficult situation for the workers to be in, so this is an attempt to sort of starve them out by removing any resources that would give them at least the capacity to continue to hold that pick line. It's a very hostile move by the company," Bruno said.
Bruno also said the length of the lockout, the use of nonunion replacement workers and the challenge to unemployment benefits raise concerns about whether the dispute is becoming an effort to weaken the union. That is his assessment of the situation, not an established finding.
What's next:
BP says it is scheduled to meet with USW Local 7-1’s elected representatives on Monday, October 26, and remains committed to reaching a ratified agreement. Workers say they want to see meaningful movement at the bargaining table before they can be optimistic about a resolution.
"Once we start to see the trend towards the middle, that's when I'll be more optimistic," Harris said.
For now, the lockout continues — and for hundreds of workers and their families, so does the uncertainty over when they’ll return to work and what their financial future will look like.
The Source: The information in this report came from BP, USW Local 7-1 members Aaron Harris and Justin Henley, and University of Illinois labor studies professor Robert Bruno.