Union Agrees to US Refineries Contract, Averting Nationwide Strike

Four-year deal includes 15% pay raise, $2,500 signing bonus

Published on Feb. 7, 2026

Got story updates? Submit your updates here. ›

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 four-year agreement includes a 15% pay raise and a $2,500 signing bonus for USW-represented employees.

Why it matters

The agreement reached between the USW and Marathon Petroleum on behalf of the refiners and chemical producers avoids a potentially disruptive nationwide strike that could have impacted a significant portion of the U.S. refining capacity. However, individual refineries and chemical plants could still see work stoppages due to disagreements over local issues.

The details

The four-year agreement provides a 4% pay increase in the first and fourth years and a 3.5% increase in the second and third years. The USW had sought a 16% overall increase, but Marathon stood firm on its final 15% offer. The new contract will replace the current one, which was extended just before its February 1 expiration.

  • 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 four-year agreement was proposed on February 1.

The players

United Steelworkers union

The U.S. labor union representing workers at refineries and petrochemical plants, which negotiated the national agreement on pay and benefits.

Marathon Petroleum

The leading U.S. refiner that negotiated the agreement on behalf of the refiners and chemical producers.

USW Local 7-1

The local union representing workers at BP's Whiting, Indiana refinery, which told members to prepare for a strike or lockout.

BP Plc

The oil company that operates the Whiting, Indiana refinery and said it would not feel bound by the terms of the national agreement approved by the USW.

Eric Schultz

The president of USW Local 7-1, who called BP's announcement unprecedented.

Got photos? Submit your photos here. ›

What they’re saying

“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

What’s next

The new contract will begin replacing the current one as it is adopted at each plant.

The takeaway

This agreement between the USW and Marathon Petroleum avoids a potentially disruptive nationwide strike, but individual refineries and chemical plants could still face work stoppages due to disagreements over local issues, highlighting the complex nature of labor negotiations in the energy industry.