The Lake County Council passed a resolution Tuesday in support of the locked out BP union workers and to request the energy company to end the lockout and resume negotiations.
BP locked out approximately 800 members of the United Steelworkers Local 7-1 from the Whiting Refinery on March 19, and many of the workers and their families live and work throughout Northwest Indiana, according to the resolution.
“The lockout has placed significant financial and emotional strain on working families, but also for local businesses, schools, neighborhoods and municipal economies throughout Northwest Indiana,” according to the resolution. “United Steelworkers Local 7-1 has raised serious concerns about the health and safety risks created by operating the refinery with replacement workers instead of the trained, experienced, local workers.”
The resolution states the council’s support for the locked-out members and their families, while calling on BP to “immediately end the lockout” and to work on “a fair agreement that protects local jobs, respects workers’ rights, and supports the long-term safety and stability of the refinery and surrounding communities.”
“The Lake County Council recognizes the importance of experienced, trained refinery workers in maintaining safe operations at a facility that directly affects the health and safety of Northwest Indiana communities,” according to the resolution.
The council passed the resolution — which will be sent to BP, the union as well as state and federal elected officials who represent Northwest Indiana — in a 6-0 vote with Councilman Charlie Brown, D-3rd, absent.
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BP spokesman Cesar Rodriguez said in a statement that the company understands the county’s “desire to see a resolution” in the lockout and negotiations.
“We’ve repeatedly asked union leadership to come back to the negotiating table so discussions can continue. The company remains ready and willing to keep talking through the issues that separate the parties and bargain in good faith to reach an agreement,” Rodriguez said. “Unfortunately, the union’s continued lack of response to meeting requests is slowing down constructive dialogue on these issues. We look forward to hearing from the union about their intent and availability to resume discussions.”
T.R. Hanson, BP’s manager of labor & employee relations, recently wrote a letter to union leadership that described a June 16 meeting where both parties discussed the company’s proposed operating technician qualifications and progression model. Since the meeting, the company reached out to the union on June 23, 29 and 30 and July 8 for a follow up meeting, but hasn’t heard back, Hanson wrote.
“The company remains ready and willing to continue discussion on those issues that separate the parties and bargain in good faith toward a successor agreement. We continue to believe that constructive dialogue is the best path forward in reaching a settlement that facilitates the return to work of our employees and the long-term success of the Whiting refinery,” Hanson wrote. “Unfortunately, the union’s continued failure to respond to meeting requests is delaying constructive dialogue on these issues.”
In response to the letter, the USW sent a statement countering BP’s portrayal.
“The fact is we’ve met dozens of times and dozens of times, British Petroleum has only presented proposals that eliminate local jobs, force hundreds of us to take pay cuts and give up bargaining and seniority rights that generations of union members fought for,” according to the statement. “More than 98% of our members have rejected that, but the company hasn’t budged since March and absolutely refuses to bargain in good faith. We’ll continue to wait for a real proposal and not phony PR statements.”
Terry Steagall, a local United Steelworkers union activist, told the council that the company has the authority to end the lockout.
“There’s no reason to have it because the union has already negotiated a national agreement with all the other refineries. This is just blatant union busting and bad faith bargaining, is what we have here. It’s something that we can’t tolerate as a society,” Steagall said. “They’ve already got a national agreement that they can agree to today. It’s just horrible how they are approaching this matter.”
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.
USW 7-1 President Eric Schultz thanked the council for passing the resolution because 800 families are impacted by the lockout.
“Your support means the world to us. It helps amplify our message to British Petroleum to end the lockout, return to the table for the first time, bargain for a fair contract,” Schultz said.
Council president Christine Cid, D-5th, said she lives near the refinery and when skilled workers aren’t present “there’s greater chance of mishap.”
“It’s very important that they have those skilled workers who are trained to handle the equipment in that refinery,” Cid said. “My other concern is the families of these men and women who are out of work. It’s got to be a struggle to pay your bills. Children are going back to school now. They should be enjoying a good vacation right now, and it’s hard to tell your children no.”
Councilman Randy Niemeyer, R-7th, said he recently went to the picket line to stand in solidarity with the employees “who are being treated unfairly by their employer.”
“Watching the activity of the contractors going in and out of a facility that has helped to support Northwest Indiana families for years, and once was a great American company Standard Oil, is now in the hands of a foreign company and how they are treating American workers … we need to be out there and give energy and visibility to this cause,” Niemeyer said.
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Councilman Ronald Brewer, D-2nd, said he would like local government units to pass similar resolutions to show “we do not support this lockout.” Gary, Schererville and Crown Point councils have passed similar resolutions, and Whiting’s Pierogi Fest and Hammond’s Festival of the Lakes recently removed BP as sponsors, giving back funding they received.
“We stand in agreement with you all to go back to work and to not bring outsiders to fulfill those jobs there,” Brewer 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 Jan. 31. BP initiated a lockout of more than 800 union employees on March 19.
Since the beginning of the lockout, about 450 employees and “specialized contractors” operate 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 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.