BP is encountering backlash from Lake County and Hammond officials amid the ongoing lockout of its employees, though the company states it has remained at the bargaining table to reach a fair agreement.
The 2026 edition of Hammond’s Festival of the Lakes will be the first time in years that BP won’t have its name attached, Mayor Thomas McDermott acknowledged Monday, but he’s fine with that because the locked-out BP workers are where the city’s sympathies lie. Indeed, the city at its May 26 meeting passed a resolution supporting them, Councilman Dave Woerpel, D-5, pointed out in a social media post Sunday.
But turning away $20,000, the cost of the sponsorship for which BP signed up, is not something to take lightly, either, he said.
“I don’t like not accepting money to help with the fest as it’s very expensive,” McDermott said via text. “Fests are loss generators, but in this case, accepting money from BP wouldn’t send the right signals to the locked-out men and women of Local 7-1.”
McDermott on Sunday posted to social media that the city would be returning the sponsorship after a Festival team member posted a “Thank you” post to the oil conglomerate as part of its sponsorship package. He was unaware that the team had accepted the money, he said, and took full responsibility for the error.
“Let me be clear: My administration and the City of Hammond stand with the men and women of USW Local 7-1 and their families. My position has never changed,” McDermott said in his statement. “After four and a half months of being locked out of their jobs, these hardworking men and women deserve a fair contract and the opportunity to return to work with dignity.
“I sincerely apologize to the members of USW Local 7-1, their families, and everyone else who was disappointed by today’s post on our Festival of the Lakes account. That post did not reflect my values as Mayor of Hammond, and the responsibility for that errant post rests with me.”
BP spokesman Cesar Rodriguez said in a statement Monday that the company has a history of supporting community events and organizations throughout Northwest Indiana.
“We are disappointed by the City of Hammond’s decision because supporting the community has been an important part of our commitment to Northwest Indiana. We respect the City’s decisions about sponsorships and remain committed to being a positive partner,” Rodriguez said.
Rodriguez said the company has been at the negotiating table to reach an agreement with the union.
“Our priority is to reach a fair agreement with the USW, while continuing to support our employees, operate safely and reliably, and serve the Northwest Indiana community that has been home to the Whiting refinery for generations,” Rodriguez said.
Lake County Board of Commissioners President Michael Repay, D-3rd, wrote BP refinery vice president Chris DellaFranco a letter July 1 outlining the agreement between Northwest Indiana residents and the company.
“For as long as I have lived and for generations before me, the people of Lake County have had a pact with Standard Oil, Amoco and now BP. We will assume the risk, deal with the smell and side effects of being in proximity to your operations, if you treat us all with respect and dignity,” Repay wrote.
Repay wrote that at the board’s next meeting it will likely pass a resolution “to convey our opinion.” But, Repay wrote that he wanted to state his “own opinion more plainly” ahead of a potential resolution.
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“With your treatment of your own employees represented by United Steelworkers, you’ve broken your end of the deal. Bring them back, quit playing games with the lives of region residents,” Repay wrote.
In a statement, Rodriguez said the company respects the county’s interest in the matter and a resolution and echoed that the company negotiating table and has worked toward an agreement.
“Our current offer is fair, builds on employees’ already strong pay, and creates opportunities to grow their skills and earn more, and supports a safer, more competitive refinery for the long term. We are ready to make meaningful progress and urge union leadership to show the same commitment by engaging seriously toward an agreement,” Rodriguez said.
The parties last held their 63rd formal bargaining session on June 10, which was the first since May 22, according to Post-Tribune archives. Negotiations began Jan. 5, and the previous contract expired on Jan. 31. BP initiated a lockout of more than 800 union employees on March 19.
Since the lockout’s beginning, about 450 employees and “specialized contractors” have been operating the refinery during the lockout. Refinery officials claim that the facility continues to “operate safely, reliably and compliantly,” without impact to operations.
At the May 22 bargaining session, BP presented what it characterized as a “revised proposal intended to move the parties closer to an agreement.” Nearly two months after the lockout started, the parties resumed talks but bargaining stalled after USW leadership asked BP to end the lockout without requiring the acceptance of its March 17 contract proposal. BP declined to end the lockout without a deal in place, according to Post-Tribune archives.
The settlement offer withdraws the company’s previous proposal that would have led to a voluntary reduction of up to 42 maintenance craft employees, included a discretionary annual cash bonus for all who meet defined criteria and a one-time lump sum payment after the contract is ratified of $2,500 to $10,000, and sets a 13% pay increase on average over the first four years of a six-year contract, with the remaining two years equaling the increases in the National Oil Bargaining program in 2030.
The union has been trying to get the company to adopt the National Oil Bargaining Program that currently covers more than 30,000 USW oil workers at dozens of employers in more than 200 bargaining units, according to Post-Tribune archives.
The union has argued that the 13% average pay increase would only come after most job classifications would see pay cuts, with some “red circled” with no raises. A discretionary bonus opportunity equals about half of what it is now, and the one-time, lump-sum payment would only come after the union agrees to eliminate dozens of local jobs, take pay cuts and give up bargaining and seniority rights, according to Post-Tribune archives.
Michelle L. Quinn is a freelance reporter for the Post-Tribune.