--- title: "US oil majors adopt hardline tactics in ongoing refinery labour disputes" publisher: "Stockmark.IT" author: "Stockmark.IT Website" published: "2026-09-07T05:16:09+00:00" modified: "2026-09-07T05:16:09+00:00" date: 2026-09-07 canonical: "https://stockmark.it/oil-majors-seek-bigger-bargaining-power-in-labor-disputes/" category: "Business" categories: ["Business", "Companies", "Financial", "Oil & Gas"] image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/us-oil-majors-adopt-hardline-tactics-in-ongoing-refinery.png?fit=1536%2C1024&quality=80&ssl=1" format: "news" language: "en-GB" --- # US oil majors adopt hardline tactics in ongoing refinery labour disputes **Published:** September 7, 2026 **Author:** Stockmark.IT Website **Categories:** Business, Companies, Financial, Oil & Gas **Featured image:** ![US oil majors adopt hardline tactics in ongoing refinery labour disputes](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/us-oil-majors-adopt-hardline-tactics-in-ongoing-refinery.png?fit=1536%2C1024&quality=80&ssl=1) --- Major United States oil companies are adopting increasingly aggressive strategies in negotiations with unionised workers, seeking to secure greater concessions in new labour contracts. This shift in bargaining power is evident in recent lockouts at several major refineries, where management has maintained operations using replacement staff and contractors. The approach marks a significant departure from previous industry norms, where the essential nature of skilled union labour was a primary deterrent against prolonged disputes. By demonstrating that refineries can continue to operate without their regular workforce, these companies are undermining one of the most powerful tools previously held by unions. The trend of hardball tactics began earlier this decade with a ten-month lockout at Exxon’s Beaumont refinery in 2021. That dispute involved 650 workers and was the longest labour conflict at a US refinery in four decades. Five years later, similar confrontations are unfolding at BP and Marathon refineries. BP is currently locked out at its Whiting, Indiana facility, while Marathon faces a dispute at its Martinez, California plant. In both cases, the refineries have continued to operate using supervisors, contractors, and replacement workers. This sustained operational capability signals that large oil firms are no longer as apprehensive about relying on non-union labour to pressure unions into accepting management proposals. At the Whiting refinery, the standoff has persisted since March 2026 over contract terms. BP has proposed an average wage increase of 13 per cent, or more than seven dollars per hour, spread over four years. The company has agreed that wage increases in the final two years of the agreement will match national oil bargaining standards. However, the proposed raise for the first two years falls below those national standards. Beyond wages, BP seeks to transfer certain non-core craft line work to specialised third-party contractors, a practice it claims is already common among competitors. The company has also proposed waivers of bargaining rights regarding the use of artificial intelligence tools and time clocks. Union representatives have drawn direct parallels between the current BP dispute and the 2021 Exxon conflict. Eric Schultz, president of United Steelworkers Local 7-1, stated that BP is executing the same playbook used by Exxon. Schultz noted that BP has hired Jordan Marcks, a former Exxon management official who oversaw the Beaumont lockout, as its lead negotiator. Marcks, who serves as Head of People Relations Americas at BP North America, recently wrote to the union requesting a response regarding federal mediation. In the letter, Marcks stated that the company is prepared to meet and believes direct dialogue is more productive than public debate. The willingness of major oil firms to run operations with replacement workers for nearly six months at Whiting suggests a new level of resolve in securing contract terms. The outcome of this dispute may influence how the industry approaches future labour negotiations. This hardline stance occurs despite a period of significant financial success for the sector. Over the last six months, major oil companies have generated substantial profits in upstream, refining, and trading businesses, driven by higher oil prices and supply disruptions from the Middle East. BP, for instance, more than doubled its second-quarter profit compared to the same period last year. The increase was driven by higher oil and gas prices, stronger refining margins, and improved trading profits. The company’s underlying earnings reached 5.7 billion dollars, exceeding analyst expectations. This financial performance provides a backdrop to the company’s strategic moves. CEO Meg O’Neill is focused on simplifying the business to concentrate on the most profitable assets, aiming to create shareholder value and restore investor confidence in the company’s stock. The combination of strong earnings and aggressive labour tactics highlights the tension between cost-cutting measures and workforce relations in the current market environment. --- **Original URL:** https://stockmark.it/oil-majors-seek-bigger-bargaining-power-in-labor-disputes/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*