In an online union negotiations announcement, BP said it presented a “last, best and final offer” at 9 a.m. Monday.
The offer comes “after nearly 60 formal meetings and hundreds of hours of exchanges over a two-month period,” according to BP.
The United Steelworkers 7-1 Union has to review the offer and decide how to proceed. BP’s offer expires at 11:59 p.m. March 12, and the 24-hour rolling contract extension is still in effect.
“The offer addresses key topics during negotiations including base wage rate increases, length (term) of the agreement, new training and pay progressions, non-core craft line discontinuations, an extended industrial peace clause, and other key topics,” BP’s online update said. “We firmly believe that the offer is fair and balances the needs of employees with the long-term competitiveness of the business.”
BP proposed a six-year contract term, which includes a 150-day notice period before strikes or lockouts at the Whiting refinery. The contract also includes a “one-time, non-benefits” lump sum payment of $7,500 for any union employee if it’s ratified by March 12.
Any operations specialist field employee in the union could also receive an additional $5,000, and any operations specialist cross-qualified union employee could receive an additional $7,500.
Base wage increases will be consistent with the National Oil Bargaining Program, according to BP, with a 3.5% increase effective Feb. 1, 2027. The average wage increase proposed over the next four years of the contract is more than $7 per hour, or a 13% increase, according to BP.
The offer also includes the adoption of a “best-in-class” operations and lab pay progression model and maintenance competency model.
BP’S other changes include a discontinuation of non-core craft lines, eligibility for up to five paid shifts of sick leave per year, increased overtime meal payments by 33%, increased boot allowance by 25%, flexibility to adopt artificial intelligence technology, “more equitable” distribution of overtime drafts and a four-day, 10-hour work schedule for maintenance technicians, according to the website.
USW President 7-1 Eric Schultz responded to the offer in a Tuesday afternoon statement. He claims that it eliminates and outsources union jobs, cuts base wages across most job classifications, strips bargaining rights, ends seniority protections for layoffs and limits the union’s ability to strike.
“This is not a fair contract proposal — it’s a rollback,” Schultz said. “Our members keep this refinery running safely and reliably. We are not going to vote to cut our own jobs, slash wages, and surrender fundamental rights that generations of workers have fought to secure.”
The union will host informational meetings for members next week before conducting a vote on BP’s offer, according to the statement.
“A ‘no’ vote could bring the parties closer to a strike, which 98% of members have already authorized, if necessary,” Schultz said. “Our membership deserves respect — not concessions and takeaways. We urge BP to return to the table with a serious proposal that protects good union jobs, fair pay, and basic workplace rights.”
On Jan. 5, BP and the union started negotiations for a new collective bargaining agreement, according to Post-Tribune archives. The previous agreement expired at 11:59 p.m. Jan. 31, and the two parties couldn’t reach an agreement by deadline.
Both parties have since agreed to rolling 24-hour extensions of the agreement for Whiting refinery workers.
USW announced on Feb. 5 that it was prepared for a strike or lockout at the BP Whiting refinery, citing its desire for a “fair agreement.”
BP has trained replacement workers, consisting of current and former employees, to operate the refinery safely and in compliance with regulations if a work stoppage occurs, according to a previous email.
The union encouraged members to remove personal belongings from the workplace, schedule any medical, dental or vision appointments, refill prescriptions with 90-day supplies and postpone major purchases or financial obligations until an agreement is reached.
According to the BP website, if employees are absent from work because of a strike or lockout, they will not be eligible for employee benefits, adding that they can still receive benefits through alternative means, including COBRA.
Negotiations updates from BP are available online, whitingnegotiations.com.
mwilkins@chicagotribune.com