BP announced Tuesday night that it will initiate a lockout for more than 800 United Steelworkers Local 7-1 employees as the two parties still haven’t come to a contract agreement.
In a Tuesday update, the company said it provided notice to cancel the 24-hour rolling contract extension, provided lockout notice, and sought commitment from the union to help facilitate a safe handover of operations. The lockout becomes effective at midnight Thursday.
“In addition to the status of negotiations, we have been operating in a continued state of labor uncertainty since (Feb.) 1, including facing the ongoing risk of strike with only 24-hours’ notice,” a BP statement said. “It is vital that we control this timeline to allow a safe and orderly transfer of operations to our qualified and highly skilled team.”
BP has trained replacement workers — consisting of current and former employees — to operate the refinery safely and in compliance with regulatory requirements, and the company doesn’t expect disruptions to its operations or production.
“BP will continue to negotiate in good faith in the hope of reaching an agreement that provides good wages while giving the company flexibility to enhance safety, improve efficiency and remain competitive,” a company statement said.
USW 7-1 President Eric Schultz responded to the lockout notice, saying in a statement that the union presented BP with an offer that would accept several of their proposals. Schultz said the company rejected it after four hours and served them with the lockout notice.
“They continue to demand that we cut more than 100 jobs, accept pay cuts to nearly all positions and give up our bargaining rights. That’s just unacceptable,” Schultz said. “We are prepared to keep fighting for a fair agreement that protects local jobs, protects wages and protects the rights of our members.”
According to BP’s negotiation update, the union canceled a Monday meeting with the company to meet Tuesday, when they offered “a slightly revised proposal.” They rejected proposals that “are critical to the long-term sustainability of the refinery,” according to BP.
The company declined USW’s proposal and sent a revised company comprehensive proposal. In order to end the lockout, the union must accept the latest BP proposal, according to the update.
USW announced on Feb. 5 that it was prepared for a strike or lockout at the refinery, and the union encouraged 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, adding that they can still receive benefits through alternative means, including COBRA.
The lockout notice comes less than one week after the USW rejected BP’s “last, best and final offer” on March 12. According to a previous union news release, 94% of its members voted, and of those, 98.3% voted not to accept the offer.
The offer came after more than two months of negotiations, according to the union, which claimed it would eliminate and outsource more than 100 union jobs, cut base wages across nearly all job classifications, strip the union of bargaining rights, end seniority protections for layoffs, and limit the union’s ability to strike.
“This is about dignity, not donuts,” Schultz previously said. “BP is making billions in profits, while demanding that working families sacrifice even more. That’s not going to happen. We are united and will not be divided.”
BP provides updates about negotiations at whitingnegotiations.com.
