BP fails to reach deal with union as Indiana refinery lockout drags on - Finance news and analysis from Global Banking & Finance Review
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BP fails to reach deal with union as Indiana refinery lockout drags on

Published by Global Banking & Finance Review

Posted on May 18, 2026

2 min read

· Last updated: May 18, 2026

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BP and Union Deadlocked Over Indiana Refinery Labor Dispute as Lockout Drags On

Ongoing Negotiations and Impact of the Whiting Refinery Lockout

By Nicole Jao

Stalled Talks and Lockout Timeline

NEW YORK, May 18 (Reuters) - BP and union leaders resumed labor contract negotiations for workers at the Whiting, Indiana, oil refinery on Monday with no agreement yet, as a lockout entered its third month this week.

Some 800 workers at the 440,000-barrel-per-day refinery, the largest in the U.S. Midwest, have been locked out since March 19 after months of negotiations failed to produce a new labor contract.

Positions of BP and the United Steelworkers

"During today's meeting, the USW again requested that BP Whiting refinery lift the lockout, but were still unwilling to resume meaningful discussions on items critical to the future of the refinery," BP said on Monday.

The British oil major said talks could only continue if the lockout remained in place.

The Steelworkers had previously accused BP of being unwilling to lift the lockout unless workers accept the company's demands.

Union Concerns and Worker Impact

“The company is trying to use mortgage payments, grocery bills, health care worries, and family pressure as bargaining leverage," said USW Local 7-1 President Eric Schultz. “We are ready to bargain, but British Petroleum should stop using this lockout to pressure workers and their families into accepting concessions.”

The union has raised concerns about a range of issues, including job cuts, pay reductions, management rights language, seniority issues and an extended six-year agreement.

Operational Adjustments and Broader Context

BP has been running the plant using contract workers during the lockout, which has come at a time of soaring fuel prices as the closure of the Strait of Hormuz, through which one-fifth of the world's oil transits, has dragged on with the Iran war.

Last month, the Whiting oil refinery experienced a brief power outage causing one of its processing units to be shut down.

(Reporting by Nicole Jao in New York and Anushree Mukherjee in Bengaluru)

Key Takeaways

  • The lockout at the 440,000‑bpd Whiting refinery—BP’s largest in the U.S. Midwest—entered its third month as negotiations resumed with no breakthrough. (bicmagazine.com)
  • BP insists it will negotiate only under lockout conditions and has proposed a six‑year deal with wage increases, lump‑sum bonuses and a 150‑day strike/lockout notice provision. (prnewswire.com)
  • Global fuel markets remain under strain due to the Strait of Hormuz closure, limiting supply and contributing to inflationary energy pressures that compound the lockout’s broader economic impact. (axios.com)

References

Frequently Asked Questions

Why are workers at BP's Whiting, Indiana refinery locked out?
Workers have been locked out since March 19 after negotiations failed to produce a new labor contract between BP and the union.
How many workers are affected by the Indiana refinery lockout?
Approximately 800 workers are affected by the lockout at BP's Whiting, Indiana oil refinery.
What issues are central to the BP-union dispute in Indiana?
Key issues include job cuts, pay reductions, management rights, seniority concerns, and the length of the labor agreement.
How is BP operating the Whiting refinery during the lockout?
BP has been using contract workers to run the Whiting refinery while the lockout continues.
Has the Indiana refinery experienced any operational disruptions during the lockout?
Yes, last month the Whiting refinery experienced a brief power outage that shut down one of its processing units.

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