Phillips 66 confirmed on October 20 that it had locked out approximately 385 union-represented employees at its Bayway refinery and Linden terminal in New Jersey after a labor contract extension expired without a new agreement. The employer-initiated lockout affects facilities including the largest refinery on the U.S. East Coast, which can process around 275,000 barrels of crude oil per day. The company said qualified management and technical personnel would continue operating the facilities.
The collective bargaining agreement covering workers at Bayway and the Linden terminal expired on October 1, with a subsequent extension ending at 4 p.m. Eastern Time on October 19. Phillips 66 implemented the lockout after the parties failed to agree on another extension. The company said its priority was to maintain safe and reliable operations during the dispute.
Teamsters Local 877, which represents the affected employees, said approximately 385 workers were locked out after union members rejected the company's latest contract proposal. The union identified wages, healthcare benefits and workplace safety protections among the issues in dispute and called for negotiations to resume. Phillips 66 said it was disappointed that the parties had not reached an agreement.
Bayway supplies gasoline, diesel, heating oil and other petroleum products to the northeastern United States. With crude processing capacity of approximately 275,000 barrels per day, it is an important source of transportation fuels for the region. The labor dispute affects union-represented staff at the refinery and terminal, but Phillips 66 has not announced a refinery shutdown.
The company said supervisors, engineers and technical specialists with refinery operating experience would maintain operations at Bayway and the Linden terminal. Those personnel have received the necessary training, according to Phillips 66. No production losses resulting from the lockout have been announced.
