Phillips 66 Locks Out 385 Bayway Refinery Workers After Failed Contract Talks

Phillips 66 (NYSE: PSX) initiated a lockout of 385 employees at its Bayway refinery and adjacent Linden terminal in New Jersey on October 19, after union members rejected the company’s latest contract proposal, labor leaders confirmed via local news reporting.

According to Teamsters Local 877, the lockout follows unsuccessful negotiations over a contract offer perceived by union members as excessively concessionary. Local 877 President Jeff Sanford was quoted saying that many workers now face extended shifts—“13 days on, 13 nights on before a single day off”—a schedule that underscores the sharp breakdown in labor talks.

The lockout constitutes a material development for Phillips 66 in the downstream energy and logistics space. The Bayway refinery and terminal serve as critical nodes for refining and product distribution in the Northeast, raising concerns over operational continuity and potential supply disruptions, although no direct impact on production has been confirmed.

As of October 27, 2026, Phillips 66’s stock trades at exactly $268.53, reflecting a 6.25% decline from the prior close. It remains unclear whether the lockout has directly influenced this decline, as no reliable sources have linked the two events. Notably, Phillips 66 also raised its quarterly dividend on October 16 and announced a refining leadership transition on October 5—both potentially influential corporate developments, although no causal connections to the stock movement have been established.

What to Watch Next

Investors will be watching closely for any updates, including whether labor negotiations resume and yield a resolution, or if the lockout expands or persists. Any indication of operational slowdowns, throughput restrictions, or escalating labor costs could materially affect Phillips 66’s refining and logistics operations.

Further monitoring is also warranted to assess whether the lockout becomes a catalyst for broader market reactions, or prompts commentary from analysts or management during the upcoming third-quarter earnings webcast scheduled for October 28.

This article will be updated if Phillips 66, union representatives, or credible news outlets provide additional details or context regarding the lockout’s impact on operations or shareholder outlook.