BP, Marathon lock out refinery workers as US labour disputes harden
The disputes at refineries in Indiana and California highlight a tougher bargaining stance among major US refiners, with operations continuing under replacement staffing arrangements.
BP and Marathon have locked out unionised workers at their Whiting, Indiana, and Martinez, California, refineries respectively, as contract negotiations take a more confrontational turn. Operations are continuing with contractors, supervisors and replacement workers, according to a report by Yahoo Finance.
BP’s Whiting lockout has continued since March 2026. The company has offered an average 13 per cent pay rise over four years and proposed moving some non-core craft work to specialised third-party contractors. BP has also proposed waiving bargaining rights over the use of artificial-intelligence tools and time clocks.
Eric Schultz, president of United Steelworkers Local 7-1, said BP was following the approach used by Exxon during its 2021 dispute at the Beaumont refinery. Exxon locked out as many as 650 workers there for 10 months.
BP has sought a union response on federal mediation, while saying direct dialogue is preferable to public debate. The source material does not establish whether mediation has begun or detail Marathon’s contract proposals, the duration of its lockout or the number of workers affected.
The outcome at Whiting could influence how major refiners approach future labour negotiations. The disputes come as BP reports underlying second-quarter earnings of $5.7 billion, supported by higher oil and gas prices, refining margins and trading profits, while the company seeks to simplify its business and focus on more profitable assets.
