Energy giant BP is facing growing labor tensions after a major union said the company does not plan to follow a national oil industry bargaining agreement, raising the possibility of a strike at one of the largest refineries in the United States.
The United Steelworkers (USW) union, which represents hundreds of employees at BP’s Whiting refinery in Indiana, said the British oil major has indicated it does not intend to follow the National Oil Bargaining Program. The refinery is the largest in the U.S. Midwest and produces key transportation fuels, including gasoline, diesel, and jet fuel, News.Az reports, citing Reuters.
The dispute comes after the USW reached a national agreement with Marathon Petroleum that is typically used as a framework for contracts covering roughly 30,000 oil industry workers across refineries and chemical plants nationwide.
Union officials said this would mark the first time BP has declined to follow the national bargaining pattern. According to union leadership, recent negotiations have focused heavily on company proposals that they say could reduce wages, eliminate some local jobs, and weaken collective bargaining rights.
Local union leaders have already warned workers at the Whiting refinery to prepare for a possible strike or lockout following weeks of negotiations that have failed to produce a new agreement. The previous three-year labor contract expired on January 31.
BP, however, said it is not legally required to follow agreements negotiated at the national level between other companies and the union. A company spokesperson said BP plans to continue negotiations based on what it believes is best for employees, the business, and the surrounding community.
The outcome of the negotiations could have broader implications for the U.S. oil refining sector, particularly as labor costs and workforce conditions remain key issues across the energy industry.