Phillips 66 has locked out union-represented employees at its Bayway refinery and Linden terminal in Linden, New Jersey. Teamsters Local 877 put the number at about 385 workers. The company said it will run both sites with trained personnel.
How the lockout came about
The collective bargaining agreement for the Bayway refinery and Linden terminal expired on October 1. A contract extension then ran out on October 19. Phillips 66 said in a statement on Tuesday that, without a further extension, it had locked out the union-represented employees to meet its commitment to safe and reliable operations.
The union gave a different account of the trigger. In a social media post, Teamsters Local 877 said the lockout followed its members' rejection of the company's latest contract offer. The union said that offer included concessions on wages, healthcare and safety protections.
What the plant does
Bayway is the largest refinery on the East Coast. It can process about 275,000 barrels per day of crude oil. The facility produces a high percentage of transportation fuels, including gasoline and diesel for the region.
Phillips 66 said it plans to keep the refinery and terminal operating safely and to continue meeting market demand with trained personnel.
Fuel markets are already strained
The dispute lands while gasoline and diesel prices remain elevated. Conflicts in the Middle East and Russia have disrupted global energy supplies. Any operational disruption at Bayway could tighten fuel markets further and push prices higher.
The Bayway lockout follows a seven-month lockout at bp's Whiting refinery, the largest in the Midwest.
