Representatives from BP and United Steelworkers met for contract talks on Friday, but the two entities remain at a distance on coming to a deal.
On Friday, BP presented what it characterized as a “revised proposal intended to move the parties closer to an agreement.” Nearly two months after the lockout started, the parties resumed talks Monday morning, but bargaining stalled after USW leadership asked BP to end the lockout of more than 800 union workers without requiring acceptance of its March 17 contract proposal. BP declined to end the lockout without a deal in place.
The settlement offer withdraws the company’s previous proposal that would have led to a voluntary reduction of up to 42 maintenance craft employees, includes a discretionary annual cash bonus for all who meet defined criteria and a one-time lump sum payment after the contract is ratified of $2,500 to $10,000, and sets a 13% pay increase on average over the first four years of a six-year contract, with the remaining two years equaling the increases in the National Oil Bargaining program in 2030,
“This reflects our continued commitment to good-faith bargaining and reaching an agreement that supports a sustainable long-term future for our employees, the refinery, and the community,” BP said in a Friday release.
The union has been trying to get the company to adopt the National Oil Bargaining Program that currently covers more than 30,000 USW oil workers at dozens of employers in more than 200 bargaining units.
A spokesman for the USW accused BP of misleading its members and the community about what their new offer includes.
“They still want to cut dozens of local jobs, while rejecting our proposal of a voluntary severance agreement for some and protecting those who want to stay,” the union’s statement read.
The union argued that the 13% average pay increase would only come after most job classifications would see pay cuts, with some “red circled” with no raises. A discretionary bonus opportunity equals about half of what it is now, and the one-time, lump-sum payment would only come after the union agrees to eliminate dozens of local jobs, take pay cuts and give up bargaining and seniority rights, the statement read.
“British Petroleum is trying to sell a concessionary package as progress,” said Eric Schultz, president of USW Local 7-1, said in the release. “The company’s public statement talks about raises, bonuses, and lump sums, but it leaves out the wage cuts, job eliminations, loss of rights, and reductions in earning potential that come with them.”
Under its previous March 17 proposal, BP claims that it would offer modernized job structures, enhanced training and upskilling, a six-year agreement, a $2,500 lump sum bonus after ratification, additional lump sum payments between $5,000 and $7,500 for “certain classifications,” wage increases, annual cash bonus opportunity, simplified local work rules and an 150-day notice requirement for intents to strike or lockout.
The union claims BP’s proposal would eliminate more than 100 local jobs, reduce pay, include sweeping changes to management rights language and seniority issues. According to Post-Tribune archives, the company also proposed eliminating maintenance and environmental jobs.
BP and USW started negotiations for a new collective bargaining agreement on Jan. 5, and its former one expired Jan. 31. The union operated under a three-year agreement, according to Post-Tribune archives.
According to BP, the company and union have had more than 60 face-to-face discussions. Monday’s meeting was the parties’ first since March 17.
For more information on BP’s proposal, visit www.Whitingnegotiations.com. USW 7-1 also has a website, supportoilworkers.com, for negotiations updates.
Staff writer Maya Wilkins contributed.
