US oil majors use lockouts to weaken refinery unions in contract disputes

September 7, 2026 at 02:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Exxon, BP and Marathon have locked out refinery workers during contract disputes since 2021, operating with replacement staff to pressure unions. BP's Whiting, Indiana lockout since March 2026 mirrors Exxon's 10-month Beaumont lockout, with BP hiring the same lead negotiator. The strategy undermines the unions' key bargaining tool that skilled labor is essential for refinery operations.

Key Facts

Exxon locked out 650 workers at its Beaumont, Texas refinery for 10 months in 2021, the longest US refinery labor dispute in four decades.
BP has locked out workers at its Whiting, Indiana refinery since March 2026, with operations continuing using contractors, supervisors and replacement workers.
Marathon is currently locking out workers at its Martinez, California refinery amid a contract dispute.
BP offers an average 13% raise over four years, or over $7 per hour, but the first two years fall below national oil bargaining standards.
BP hired Jordan Marcks, the former Exxon official who oversaw the Beaumont lockout, as lead negotiator in the Whiting dispute.

Lockout Strategy

The trend began with Exxon locking out 650 workers at its Beaumont refinery for 10 months in 2021, the longest US refinery labor dispute in four decades. Five years later, BP and Marathon are in similar positions, locking out workers at their Whiting, Indiana and Martinez, California refineries respectively. The refineries continue to operate with contractors, supervisors and replacement workers, showing that Big Oil is less afraid than before to use replacement staff while seeking concessions. This undermines one of the unions' most powerful bargaining tools—that skilled unionized labor is essential for operations.

BP Whiting Dispute

The BP lockout at the Whiting, Indiana refinery since March 2026 suggests the biggest oil companies are playing hardball to have the union accept their proposals. BP offers an average 13% raise, or over $7 per hour, over four years, with raises in the last two years matching national oil bargaining levels. The proposed 13% raise for the first two years is below national oil bargaining standards. BP also wants to transfer some non-core craft line work to incumbent specialized third-party contractors, as most competitors already do. The supermajor has proposed a clear waiver of bargaining rights in two proposals—one regarding AI tools and technology, another concerning time clocks.

Union Response

Eric Schultz, president of United Steelworkers Local 7-1, told Reuters that BP is running the exact same playbook as Exxon did in 2021. BP hired Jordan Marcks, the former Exxon management official who oversaw the Beaumont lockout, as lead negotiator in the Whiting dispute. Marcks, Head of People Relations Americas at BP North America, wrote to the union requesting a representative response about federal mediation. He stated BP is available and prepared to meet, and believes direct dialogue is more productive than public debate. The nearly six-month standoff at Whiting has shown that the biggest oil firms are willing to run operations with replacement workers to get union workers to accept proposals.