United Steelworkers Local 7-1 workers will have to spend more time without work at the BP Whiting refinery after an unsuccessful return to negotiations Wednesday.
However, union members are prepared to continue picketing outside the refinery.
“I hope we’re going back soon, but they keep stalling,” said Steven Kallies, a union member who’s worked at BP for 17 years. “It’s all a horse and pony show, I believe. They have no intention of giving us a fair contract.”
The company announced in a Wednesday morning update that the parties held their 63rd formal bargaining session for a labor agreement. Wednesday’s bargaining session was the first since May 22, according to Post-Tribune archives.
Negotiations began on Jan. 5, and the previous contract expired on Jan. 31. BP initiated a lockout of about 800 union employees on March 19, which has stayed in place for nearly three months as negotiations have continued.
According to BP’s website, about 450 employees and “specialized contractors” are operating the refinery during the lockout. Refinery officials claim in updates that the facility continues to “operate safely, reliably, and compliantly,” without impact to operations, despite relying on replacement workers.
BP’s Wednesday update — which came before noon — said the company and union remain far apart “on proposals that are critical to the refinery.” A deal would result in a return to work for union employees.
“We remain committed to engaging in good faith bargaining toward a fair and sustainable agreement that supports employees, the refinery, and the Northwest Indiana community,” the update said.
According to Post-Tribune archives, previous negotiations have stalled after USW leadership asked BP to end the lockout without requiring an acceptance of its March 17 contract proposal, a request that BP has declined.
BP’s updates say its offer withdraws a previous company proposal that would have led to a voluntary reduction of up to 42 maintenance craft employees, includes a discretionary annual cash bonus for those who meet defined criteria, an average 13% pay increase over the first four years of its proposed six-year contract. Pay increases for the last two years will be equivalent to increases from the National Oil Bargaining Program in 2030, and union employees would receive a one-time lump sum payment after ratification, ranging between $2,500 and $10,000.
USW officials were unable to immediately provide an update on Wednesday’s contract negotiations.
According to Post-Tribune archives, the union has tried to get the company to adopt the National Oil Bargaining Program that covers more than 30,000 USW oil workers in more than 200 bargaining units.
The union has previously argued that BP’s 13% pay increase would come after most job classifications would see pay cuts. The discretionary bonus would be about half of its current amount, and the lump-sum payment would come after USW agrees to eliminate dozens of local jobs, take pay cuts and give up bargaining and seniority rights, according to a previous statement.
Kallies said he applied for unemployment during the lockout, which went through on May 28. Since he was a USW member during the union’s 2015 strike, Kallies said his family saved money ahead of the lockout, which he said has lessened the economic strain.
The union hall has also helped employees with bills through its strike and defense fund, he added. Kallies believes that people are doing better economically than they had originally expected.
“I haven’t really heard of anybody struggling at all,” Kallies said, “which is a good thing.”
Kallies picketed outside the Whiting refinery on Indianapolis Boulevard from about 8 a.m. to noon Wednesday. He said employees are scheduled to picket in four-hour shifts. He believes the company has no intention to allow employees back to work.
He’s felt like this since the beginning of negotiations, Kallies said. He feels that the company’s proposals would “completely gut the union,” give them no bargaining rights and cut their pay.
“We were negotiating, but they weren’t coming off any of their proposals,” Kallies added. “They’re not compromising, and they’re not working with us. … They keep saying they want to be competitive. You want to be competitive? Then give me a fair contract.”
For more information on BP’s proposal, visit whitingnegotiations.com. USW 7-1 also has a website, supportoilworkers.com, for negotiation updates.
mwilkins@chicagotribune.com
