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Grangemouth dispute: Ineos says strike could 'tip plant over edge' Grangemouth: Ineos says strike could 'shut much of Scotland'
(about 5 hours later)
The owners of the Grangemouth refinery and petrochemical site have warned a threatened 48 hour strike could push the facility "over the edge". The operators of the Grangemouth refinery and petrochemical site have warned a threatened 48-hour strike "could effectively shut much of Scotland".
Members of the Unite union are planning to walk out on Sunday 20 October in a row over a union convenor. Members of the Unite union are planning to walk out on Sunday 20 October in a row involving a union convener.
Workers began an overtime ban and a work to rule earlier this week. Unite then announced on Friday that notice for strike action had been served. Site operator Ineos said it would do all it could to "minimise the harm" of the strike.
Ineos labelled the move "completely irresponsible". It has drawn up a contingency plan to bring in more fuel by sea if necessary.
Calum MacLean, the company's UK chairman, said: "Unite could effectively shut much of Scotland. Both the Scottish and UK governments said they were drawing up contingency plans as they called for more talks between the parties to avert a strike.
"We told them that we would be willing to go to ACAS at the appropriate time but rather than negotiate they prefer to strike." The action could potentially disrupt the flow of Brent crude from the North Sea.
Ineos said it would do all it could to minimise the impact of the strike. It is likely to force a closure of the North Sea's Forties pipeline system as the Kinneil oil processing terminal - where oil from the Forties field comes ashore - relies on Grangemouth for its steam and power.
"We have high fuel stocks in the refinery and a contingency plan to use the site as an import terminal to bring additional fuel in by sea if necessary," said Mr MacLean. The Forties oil field was closed by a strike involving tanker drivers in 2008.
'Back from brink' 'Completely irresponsible'
However, he warned: "The strike could tip Grangemouth over the edge. Ravenscraig, MG Rover and Coryton have all disappeared. Unless we find a way back from the brink, Grangemouth will be next". Ineos labelled the Unite action as "completely irresponsible".
Ineos recently launched a survival plan for Grangemouth, warning that the site will close by 2017 without investment and reduced costs. It said the plant was losing £10m a month. The company said its priorities in the coming days were to ensure the safety of the site and "to do everything it can to minimise the impact of the strike on Scotland and the north of England".
On Friday, the union's Scottish secretary Pat Rafferty said: "Unite has made every effort to pull Ineos back from the brink but at every opportunity this company has kicked our proposals for peace into touch." Ineos Petrochemicals UK chairman Calum MacLean said: "Unite could effectively shut much of Scotland.
The dispute centres on Stephen Deans, who was involved in the row over the selection of a Labour candidate in Falkirk. "We were in meetings with Unite as late as yesterday and discussions have certainly not been exhausted.
"We told them that we would be willing to go to Acas at the appropriate time, but rather than negotiate they prefer to strike."
He added: "We will do all we can to minimise the harm this Unite strike does to the people of Scotland and the north of England.
"We have high fuel stocks in the refinery and a contingency plan to use the site as an import terminal to bring additional fuel in by sea if necessary.
"The strike could tip Grangemouth over the edge. Ravenscraig, MG Rover and Coryton have all disappeared. Unless we find a way back from the brink, Grangemouth will be next."
'Peace proposals'
Workers began an overtime ban and a work to rule earlier this week in a dispute centring on union convener Stephen Deans, who was involved in the row over the selection of a Labour candidate in Falkirk.
Mr Deans, who is chairman of both Labour's local constituency party and Unite in Scotland, was suspended by Ineos, then reinstated.Mr Deans, who is chairman of both Labour's local constituency party and Unite in Scotland, was suspended by Ineos, then reinstated.
Both the Scottish and UK government expressed disappointment at the news of possible strike action and called for more talks. Unite said on Friday it had "made every effort to pull Ineos back from the brink but at every opportunity this company has kicked our proposals for peace into touch".
A strike at Grangemouth in 2008 is estimated to have cost the UK economy hundreds of millions of pounds. A source at the union said it had offered full safety cover over the strike period at no cost to avoid a "hot shutdown", which would have meant that the pipeline and terminal could remain in operation. But it said Ineos had turned down the offer.
Contingency plans
British Energy Secretary Edward Davey said the UK government had been working with the fuel industry and Scottish ministers to "put robust alternative supply routes in place in the case of a strike, which means that motorists can carry on as normal and other impacts will be kept to a minimum".
He urged Unite to call off the strike, and both parties to negotiate a "fair, sustainable resolution" on the long-term future of the plant.
The Scottish government said the announcement of the strike "reinforces our fundamental view that this dispute can only be properly and fully resolved by negotiation between the company and the trade unions".
It added: "We will now redouble our efforts to encourage negotiation to avert a strike, whilst taking forward contingency planning activity."
Ineos recently launched a survival plan for Grangemouth, warning that the site will close by 2017 without investment and reduced costs. It said the plant was losing £10m a month.
The Grangemouth refinery processes 210,000 barrels of oil per day and provides most of Scotland's fuel. It is owned jointly by Ineos and PetroChina.