After more than a century in the community, Phillips 66 is set to shut down its refinery facilities in the Los Angeles area later this year, impacting hundreds of union employees and contractors. While the company is pledging support for the workers who will be losing their jobs, a coalition of union, workforce development, and other local groups are also working to facilitate that transition.

Last October, Phillips 66 announced its plans to halt operations in the fourth quarter of this year at the refinery’s two Southern California facilities linked by five miles of underground pipeline – Carson, built in 1923, and Wilmington, built in 1919. Together, the facilities process crude oil and refine it gasoline, which is distributed in California, Nevada, and Arizona, and other petroleum products.

“We understand this decision has an impact on our employees, contractors, and the broader community,” Mark Lashier, chairman and CEO of Phillips 66, said in a statement following the announcement. “We will work to help and support them through this transition.”

Since word of the pending closure, community stakeholders have also stepped up with hopes of a worker-centered transition of the approximately 600 employees and 300 contractors who are expected to be affected by the shutdown.

The goal is to help them find new jobs, and possibly new careers. A lot of groundwork has already been laid.

‘The longer one has to prepare, the better’

Phillips 66, historically, has been a provider of ‘good union jobs,’ according to Armando Loza, executive director of the Miguel Contreras Foundation (MCF). MCF is a program partner of the Los Angeles County Federation of Labor, AFL-CIO (The LA Fed).

He says oil refineries have made a lot of investment in workforce development. “Over the past 20 years, [they have been] providing training programs, providing those necessary skillsets that are needed for entry-level work, but also some very highly-skilled positions – whether we’re talking about members of the Steelworkers or members of other unions, pipefitters, steamfitters, etc.”

Loza notes the refinery has provided opportunities that don’t require a postsecondary education.

He says the fact that the closure plan was announced more than a year in advance is helpful to the workforce.

“The longer one has to prepare, the better. We’ve seen companies announce closures and give two-week notices, three-week notices. That puts individuals in a really unfortunate bind to start figuring out what is next.”

Loza says it’s crucial for the coalition of support organizations to build relationships with the affected workers, collect individualized data, create specific strategies, and conduct follow-up.

Career Navigators: A Crucial Part of the Workforce Transition

“USW 675 (United Steelworkers Local 675) has created a portal for its members. They’re already using navigators to meet with these individuals one-on-one to support them during this transition, and it has been great,” he says.

Loza continues “The navigators have been able to enter members and keep track of who is interested in what and/or what schooling they have applied for. This is something that the Miguel Contreras Foundation was really advocating for to ensure that there is a design for resources and support that is very individualized.

“We want to make sure that we’re very strategic and very mindful that every individual has different needs. That’s one thing I’ve learned over the past 25 years – no two job seekers are alike.”

Loza says among the community stakeholders who are offering assistance – to both union and, in some cases, to non-union workers – during the transition, include the Department of Economic Opportunity of L.A. County, the City of Los Angeles Economic and Workforce Development Department, the South Bay Workforce Investment Board, UCLA Labor Occupational Safety & Health Program (LOSH), University of California San Diego, Los Angeles Trade-Technical College, Long Beach City College, and Labor Community Services.

“I am hopeful for this collaboration, and hopeful that Phillips 66 workers will be the primary focus,” Loza adds. “I do anticipate Phillips 66 wanting to support the efforts that the coalition is going to be introducing to these workers, whether it’s giving workers an opportunity to come to a resource fair or the opportunity to commit to training.”

Supporting Reskilling and Skills-Based Hiring

Rosi Romo is the program director of the California Oil Workers Readiness Program (CORP), United Steelworkers. She explains that the Steelworkers Charitable and Education Organization (SCEO) is among the organizations that received a Displaced Oil and Gas Workers Fund grant last year from the State of California Employment Development Department (EDD).

She says with that funding, the CORP program aims to get the refinery workers ready for their next chapters. “These workers are skilled in unbelievable skills, but it’s all proprietary to the refinery.

“What we’re seeing is that they look at a job description and say, ‘I can do that job. It’s almost what I’m doing now, but I don’t have the schooling to back me up. There is nothing on paper that I can show this potential employer and be hired there.’”

Romo says many of the workers have high school diplomas and no postsecondary education. She says Phillips 66 is expected to give employees their training records that document skills attainment beginning in August.

She notes, “We’ve started working with community college to try to get credits for prior learning – trying to see what’s already there and how we can fast-track that.

“We’re also trying to see how we can work with different entities like the City of Los Angeles, L.A. County with the job openings they have, acknowledging what may be a job classification or a job description at the refineries, and trying to match those skills up so that even though they don’t have a paper record showing all the skills that they have, they can match their job descriptions.”

Exploring New Opportunities

Romo explains some pathways for the displaced workers might include, for example, truck driving, work in solar panels and EV chargers, and HVAC. “We’re not capping them at refinery work, right? Folks have really been looking into ‘What do I want to do if my union is granting me this money, which is $15,000 to go into any education?’”

She also says the level of skills learned at Phillips 66 might allow some to avoid having to start anew. “[We’re] figuring out if we can test them out to a journeyman-level as a huge option for them.”

Additionally, the program has hired three career navigators who are onsite at the refinery engaging with the workers to help them determine their options. Romo says, so far, more than 200 members have signed up or are interested in CORP – and 20 members are scheduled to begin outside coursework.

Despite Advanced Warning, Workers Still Face Uncertainty

However, for the workers, not knowing exactly when their jobs are coming to an end makes it challenging for some to figure out when they want to take advantage of services. “I’m just going to say we can’t enroll as many people as we want into actual programs just yet,” says Romo.

Layoffs are expected to begin in December. But she says it’s expected that some workers will remain for a period of time beyond the end of the year. “The speculation right now is that they’re probably going to have to keep running at some level until they completely break down and clean up the site.”

She also adds, “Our understanding is that a slim number of members will be sent over to maritime [Phillips 66 LA Terminal].”

Phillips 66 employs about 365 members of USW Local 675 in the Los Angeles area, according to Romo.

Can the Work of a Coalition of Stakeholders Be a Model for Future Closures?

“There is never a good time for workers to learn about impending job loss, especially during a cost-of-living crisis,” says Yvonne Wheeler, president, Los Angeles County Federation of Labor, AFL-CIO, in a statement to WorkingNation.

Wheeler adds, “However, having a one-year lead time on the facility closure enables us to mobilize resources and ease the transition for these workers.

“We must make the most of our one-year lead time and take a holistic approach. Having organizations like the Miguel Contreras Foundation and Labor Community Services available as resources to work with the unions and their affected members will ensure that the direct needs of these workers can be addressed. Ensuring the voices and needs of the affected Phillips 66 workers will be central to this transition.” 

Noting the yearlong lead time, the MCF’s Loza hopes it will help create an example for companies and workers who – in the future – find themselves in the same situation. “I think this is a perfect opportunity considering that we do have time to really think about that model or that framework because we know there will be more closures.

“We know there will be additional support needed in other areas, not only here in California. I always think of how we can duplicate some of the best practices that are being done here in other places. I think the L.A. region is positioned in a way that it’s a very small circle of individuals who know each other, who respect each other, and who know what resources need to come in. We bring each other to the table.”

The USW’s Romo stresses, “The program has a hard stop in March of 2027 in terms of reporting and grants and getting the money. I need the members to know that this is being put on by their union. They need to know that these services are out there.

“No matter what happens when they get laid off, what seniority level they’re on, their union is here for them. We are here for you. We are going to figure this out together.”