Could a New Jersey refinery labor dispute disrupt the region’s fuel supply?

✅Phillips 66 has locked out about 400 union workers at its Bayway refinery in Linden

✅Union leaders warn that the lockout could interrupt fuel supplies

✅A petroleum analyst expects little impact on gas prices despite the labor dispute

LINDEN — Could a lockout at New Jersey's Bayway refinery disrupt the region's fuel supply and drive up gasoline prices?

Phillips 66 locked out 400 members of Teamsters Local 877's process and mechanical bargaining unit on Monday after they rejected a contract offer. Workers turned out in force to picket in front of the facility, the largest refinery on the East Coast, holding picket signs and flags along Routes 1 and 9 as passing drivers honked in support.

Local 877 President Jeff Sanford told News 12 that the plant is operating with a skeleton crew. He expects the lockout to interrupt supplies and cause gasoline prices to spike across the Northeast.

Sanford also expressed concern about emergency response, saying first responders who would normally respond “in a heartbeat” to an emergency are also on the picket lines.

Why a Bayway lockout matters to New Jersey drivers

Gasoline, diesel, jet fuel, bunker oil, marine oil and heating oil are produced at Bayway and distributed throughout the Northeast and Mid-Atlantic, GasBuddy Head of Petroleum Analysis Patrick DeHaan told New Jersey 101.5.

Despite the refinery's importance to the region, DeHaan does not expect the lockout to significantly affect prices because the company likely prepared for the possibility of a labor dispute.

“Refineries prepare contingency plans if there is a strike or a lockout, and often times they bring in workers from outside the region temporarily during the negotiations to make sure that the refinery continues safely [to] run,” DeHaan said.

There could be some “low-level” issues as the temporary crew learns Linden's operations. But DeHaan pointed to major refinery labor disputes in Whiting, Indiana, and California, saying there was little impact on fuel supplies and prices.

“Generally, there is very little, if any, impact at all during these negotiations as that contractual crew comes in and operates the refinery during the lockout and during the negotiation, so I wouldn't expect any impact on gas prices,” DeHaan said.

Phillips 66 says refinery will continue operating

Phillips 66 said in a statement that it was “disappointed” by the vote but would continue operating safely and reliably.

“Phillips 66 plans to maintain safe operations at the Bayway Refinery and Linden Terminal with properly trained and qualified personnel to meet all customer requirements. Personnel supporting operations include supervisors, engineers and technical experts with many years of experience working in refinery and terminal operations and are fully trained to operate the facilities safely,” the company said.

Sanford told News 12 that negotiations were expected to continue Wednesday morning.

Linden Mayor Derek Armsted said the lockout and a lack of emergency response team on site has him worried the city's safety. Bayway can produce 275,000 barrels of crude oil per day, with a total processing capacity of approximately 285,000 barrels per day, according to the mayor.

I stand firmly with the hardworking union men and women who have been locked out of their jobs, but I am deeply concerned about what their absence means for the safety of our community. We are talking about a major petroleum refinery, and many of these workers are the very people trained to respond when an emergency occurs," Armsted said in a statement. "The people of Linden deserve to know that their safety is not being compromised because of a labor dispute."

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