Sept 14 (Reuters) - BP's 440,000 barrels-per-day oil refinery in Whiting, Indiana on Monday said labor contract negotiations are underway.

Last week, BP had shared a video update, proposing "several pay-for-knowledge job progression models like those used at other BP refineries and within the refining industry."

The company said in a statement that discussions with United Steelworkers Local 7-1 were constructive and that the parties had agreed to meet again later this week.

It added that it is proposing a six-year agreement, a 150-day industrial peace period before any future strike or lockout after contract expiration, and wage increases that would raise base pay rates by 13% over the first four years, with industry-pattern increases in the final two years.

The proposal also includes a $2,500 signing bonus in line with the national oil bargaining pattern and additional payments of $5,000 to $7,500 for employees in certain roles.

BP said there has been no impact to refinery operations from the labor dispute.

(Reporting by Anjana Anil and Pranav Mathur in Bengaluru; Editing by David Gregorio)

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