Union Agrees to US Refineries Contract, Averting Nationwide Strike

The four-year agreement will lift pay for hourly workers by 15% and provide a $2,500 signing bonus.

Published on Feb. 6, 2026

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The U.S. United Steelworkers union has adopted a national agreement on pay and benefits with leading U.S. refiner Marathon Petroleum, averting a nationwide strike that could have affected 30,000 workers at 26 companies operating crude oil refineries and petrochemical plants. The agreement provides a 15% pay increase for hourly workers over the four-year contract and a $2,500 signing bonus.

Why it matters

The nationwide strike would have significantly impacted U.S. refining capacity, potentially leading to fuel shortages and price spikes. The agreement demonstrates the union's ability to negotiate favorable terms for its members despite initial disagreements over the proposed pay increases.

The details

The four-year agreement was negotiated between the USW union and Marathon Petroleum on behalf of the refiners and chemical producers. It provides a 4% pay increase in the first and fourth years, and a 3.5% increase in the second and third years. The agreement was approved by the USW National Oil Bargaining Program (NOBP) policy committee that represents oil workers from around the U.S.

  • The current agreement was extended on a rolling, 24-hour basis just hours before it was due to expire at 12:01 a.m. on February 1.
  • The agreement was proposed on February 1 and approved on February 6.

The players

United Steelworkers (USW) union

The U.S. labor union representing workers in the oil refining and petrochemical industries, including about 30,000 workers at 26 companies.

Marathon Petroleum

A leading U.S. refiner that negotiated the national agreement on behalf of the refining and chemical production companies.

USW Local 7-1

The local union representing workers at BP's Whiting, Indiana refinery, which has not agreed to the national contract terms.

BP Plc

The oil company that operates the Whiting, Indiana refinery and has not agreed to be bound by the national agreement.

Mike Smith

The chairman of the USW National Oil Bargaining Program (NOBP) that represents oil workers nationwide.

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What they’re saying

“We are pleased that Marathon and the USW have successfully negotiated a pattern agreement for new collective bargaining contracts in the U.S. refining industry. We look forward to our local sites moving forward with the ratification process.”

— Jamal Kheiry, Marathon Petroleum spokesperson (marketscreener.com)

“USW members, across the country, across employers, across our industry, stood together in calling for a fair contract. Their unity and solidarity made this agreement possible.”

— Mike Smith, USW NOBP Chairman (marketscreener.com)

“Regardless of what was agreed upon at the national level between Marathon and the international USW, the Whiting Refinery is, in no way, obligated to follow the 'pattern.' We will continue to bargain in the best interests of our employees, our company, and the community.”

— BP spokesperson (marketscreener.com)

“We've spent most of our negotiations discussing BP's concessionary proposals that would eliminate local jobs, reduce pay across the board and strip us of bargaining rights. We will continue to negotiate in good faith.”

— Eric Schultz, President of USW Local 7-1 (marketscreener.com)

What’s next

While a nationwide strike has been averted, individual refineries and chemical plants could still see work stoppages due to disagreements over local issues. The Whiting, Indiana refinery operated by BP is one such example, where the local union has not agreed to the national contract terms.

The takeaway

The successful negotiation of a national agreement between the USW union and Marathon Petroleum demonstrates the union's ability to secure favorable terms for its members, even in the face of initial disagreements over pay increases. However, the potential for local disputes at individual refineries highlights the complex nature of labor negotiations in the oil and gas industry.