Members of the United Steelworkers (USW) assigned to BP's Whiting refinery in Indiana voted overwhelmingly on Thursday to reject the company's latest contract proposal, which BP characterized as its "last, best, and final" offer.
The union said in a release that turnout was unusually high, with 94% of members casting ballots on Thursday and 98.3% of those votes opposing the proposal. BP had presented the Last, Best and Final offer (LBFO) to the union last week and indicated the offer would expire in 10 calendar days.
USW leaders said the proposal followed two months of negotiations and included substantial changes to core contract provisions. According to the union’s statement, the company sought to limit the union’s ability to strike and to remove bargaining rights, impose base wage cuts across job classifications, eliminate and outsource 100 union positions, and end seniority protections in the event of layoffs, among other changes.
United Steelworkers Local 7-1 represents roughly 800 employees at the Whiting facility, which the union describes as the largest refinery in the U.S. Midwest. The local's bargaining committee said it has relayed the vote results to BP and will allow the company an opportunity to return with what the committee characterized as a more substantive proposal.
BP issued a response late Thursday confirming that the represented workforce had voted not to ratify the company's "final" offer. In its statement, BP said: "BP will continue to bargain in the best interests of our employees, our company, and the community."
Eric Schultz, president of USW 7-1, accused company management of attempting to fracture union solidarity. Schultz said management had offered workers donuts during shifts and had made threats concerning the loss of health insurance and the possibility of a lockout.
The labor relationship has been operating under short-term extensions since the existing contract expired on January 31. The union said workers have been functioning under rolling 24-hour extensions of that agreement while negotiations continue.
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