Hello, Chris DellaFranco here, the bp Whiting refinery manager.
I want to build on my last video where I walk through some important parts of our contract proposal related to training and career advancement. Today, I want to talk about items that have a big impact on you and your family, what you earn, how work fits into your life, and the benefits you receive. I want to make sure you understand what we're proposing and why.
What are we proposing? Let's start with base wage rates. BP is proposing NOBP base wage rate increases for six years. This means 4% in year one, 3.5% in years two and three, and another 4% in year four. Raises for years five and six will follow future NOBP increases. On aggregate, our entire employee base will see a 13% increase in base wage rates over the first four years of our proposed six-year contract.
The reason the average is lower than the NOBP is because our proposal includes adjustments to base wage rates in some job classifications. We're proposing these adjustments to better align those base wage rates with our market. We want to be clear about what that means.
If you are a current employee in those classifications, you would keep your current base wage rate, no reduction. You may have heard this referred to as red circle protection. This protection would remain in place through the 2027 wage increase, after which you would begin to receive the contractual wage increases moving forward.
But it's important to emphasize that 70% of employees would receive base wage increases on day one following contract ratification. Our maintenance inspection and some operation groups will see the full NOBP wage rate increase over the course of the contract.
As discussed in my last video, the proposed job progression models would allow you to advance to the top rates of pay more quickly. For example, under the current contract, it takes five years to progress from entry level to the top rate of pay in operations, the lab and maintenance.
Under our proposed progression models, we would anticipate that most employees can reach the top rate of pay in just three years. I also want to address our proposal to discontinue the operations specialist cross-qualified and operations specialist field roles, known as OSC and OSF.
Today, those roles receive a pay additive for holding additional cross-qualifications or performing additional responsibilities. Under our proposal, operations would move to a simplified two-job structure made-up of operating technicians in the field and board technicians on the board. Because the additional OSC and OSF qualifications and responsibilities would no longer be required, the associated pay additive would also be discontinued.
I want to be clear, this proposed changes to the OSF and OSC roles would not result in any employee layoffs. Affected employees would become either operating technicians or board technicians, and they would receive a sizable lump sum payment to help compensate for the discontinuation of the associated pay additives. We've released several infographics on the website whitingnegotiations.com with more details on these proposals, and I would encourage you to take a look. Please also reference the wage rate tables that were sent home in May.
So let's move on to work-life balance. To improve work-life balance, we've also proposed changes to how overtime drafts are handled. We're proposing a round-robin rotation based on overtime hours worked.
Combined with significant training investments, we believe these changes would help expand the overtime pool, reduce unplanned overtime in drafts, and create a fairer system for sharing overtime across the workforce so employees can have more certainty around their schedules. We are also proposing a 4/10 schedule for maintenance that will create a more predictable schedule.
And on benefits, there are no proposed changes to the quality, comprehensive benefits that you now receive, including healthcare, vision, dental, up to six weeks of paid vacation, four weeks of paid parental leave, 11 paid holidays, up to 26 weeks of paid disability leave, life insurance, retirement benefits, 401k match, and much more.
So in summary, what do these proposals mean for you and your family? First, it means six years of base wage increases that would match the national pattern, the same strong benefits package, along with more training, more skills, and more opportunity, and ultimately a safer, more reliable workplace.
You will continue to hold some of the best paying top benefited jobs in the region and the whole state. Second, it would mean more predictability at home and more flexibility on the job. Unplanned overtime and drafts are one of the biggest impacts to work-life balance at this site. Spreading drafts more equitably and reducing the need for them through training is a direct response to what you have told us you want.
In closing, we've made these proposals to bolster the long-term success of the refinery for generations to come, but also to develop and prepare you to progress in your craft and careers, while providing certainty of annual wage increases, more predictable scheduling, and stable benefits.
We want to reach a ratified agreement and bring you back to the refinery so we can begin this next chapter together. To make that happen, we will continue to meet with USW 7-1 representatives to find common ground as our negotiations progress.
Thank you for listening and please go to whitingnegotiations.com to stay up to date.