BP's Whiting refinery presented a revised contract proposal to the United Steelworkers Local 7-1 on Sept. 29, 2026, aiming to resolve an ongoing labor dispute. The proposal includes a move from a seniority-based progression system to one based primarily on competency and skills.
This change would offer training opportunities for employees, allowing them to qualify for higher pay and positions more quickly. BP said qualifying employees across five of seven workstations, up from as few as one, improves coverage and enables fairer overtime allocation.
The company also said the new system strengthens safety by building a broader understanding of refinery operations among staff. This equips employees to prevent and respond to operational issues.
Financially, BP offered an average 13 percent wage increase, amounting to over $7 per hour, spread over four years. The proposal said raises in the final two years of the six-year agreement would match the national pattern once it is determined.
BP also aims to transfer certain non-core craft-line work to specialized third-party contractors. The company said most of its competitors already use this practice for similar work.
The proposal does not broadly remove bargaining rights from the Whiting Bargaining Unit. BP said most changes involve contract terms and do not waive the union's right to bargain.
Other aspects of the proposal focus on improving work-life balance for employees. Details on these improvements were not immediately available.
BP proposed a six-year contract term, which includes an extended industrial peace clause. This clause, common within the industry and already present in other United Steelworkers agreements, would mandate a 150-day notice period before either the union could initiate a strike or the company could implement a lockout.
BP said this extended notice period reduces labor uncertainty for both employees and the company. The lockout at the Whiting refinery has been in place since March.
Negotiations between BP and USW elected leadership have involved more than 60 meetings. For nearly two months after the lockout began, USW representatives declined engagement beyond proposing a return to work under the previous agreement without resolving outstanding issues.
Indiana Governor Mike Braun's office convened a joint meeting between BP and USW representatives on July 30. The two parties met again on Sept. 14 and Sept. 17 as discussions continued, with both sides indicating a willingness to work with a federal mediator.
