Stock Markets February 5, 2026

Union at Whiting Refinery Urges Preparations for Strike After Talks Stall

Contract talks between United Steelworkers and BP remain unresolved as the local union warns of a possible work stoppage at the Midwest’s largest refinery

By Jordan Park BP
Union at Whiting Refinery Urges Preparations for Strike After Talks Stall
BP

United Steelworkers local 7-1 has asked employees at BP’s 440,000-barrel-per-day Whiting, Indiana refinery to prepare for a strike or lockout after prolonged negotiations produced no agreement. The union says 98% of the roughly 800 workers it represents authorized strike action, and it alleges the company proposed significant workforce reductions and the removal of some workplace protections. BP says dialogue has occurred and that it is focused on avoiding a work stoppage while negotiations continue.

Key Points

  • USW local 7-1 asked employees at BP’s Whiting refinery to prepare for a strike or lockout after negotiations failed to produce a contract.
  • About 98% of the roughly 800 union-represented workers voted to authorize a strike, giving the union the option to initiate job action.
  • The dispute centers on proposed workplace changes by BP, including cutting more than 200 union jobs and removing some workplace protections; the refinery produces gasoline, diesel and jet fuel and is the largest in the U.S. Midwest.

The United Steelworkers (USW) local that represents workers at BP’s Whiting, Indiana refinery told employees to be ready for a strike or a lockout after weeks of bargaining failed to produce a deal, the union said on Thursday. The plant processes about 440,000 barrels per day.

Members of USW local 7-1 voted overwhelmingly to grant strike authorization, with 98% of the approximately 800 workers backing the move. The authorization does not automatically start a strike but gives the union leverage should it choose to walk away from the bargaining table.

Eric Schultz, president of USW 7-1, criticized BP’s negotiating stance. "BP has rejected almost all of our proposals with very little discussion," he said. Schultz added that the union intends to "continue to bargain in good faith and stand united in demanding a fair contract for all of our local union members."

According to the union, BP put forward workplace changes during negotiations that would cut more than 200 union jobs across operations, maintenance and environmental safety, and would remove certain workplace protections. Those proposed changes are a central point of contention in bargaining, the union said.

A BP spokesperson responded to the union’s characterization of the talks, saying, "Allegations that there has been little dialogue between BP and the union are inaccurate," and added that the company continues to focus on reaching an agreement with the union and avoiding a work stoppage.

The prior collective bargaining agreement for the Whiting refinery was in place for three years and expired on January 31. The facility is the largest refinery in the U.S. Midwest and supplies key transportation fuels, including gasoline, diesel fuel and jet fuel.


Industry note - The dispute has implications for regional fuel supply given the refinery’s scale and product slate, though the union and BP remain engaged in negotiations.


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Risks

  • Potential for a strike or lockout at the 440,000-barrel-per-day Whiting refinery - this could affect regional supplies of gasoline, diesel and jet fuel if work were to stop.
  • Proposed workforce reductions and changes to workplace protections are disputed, creating uncertainty about the timing and outcome of negotiations and the stability of operations.
  • A breakdown in talks could prolong labor unrest, sustaining operational and market uncertainty for the regional energy and transportation fuels sectors.

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