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Grangemouth refinery 'to begin cold shutdown' ahead of planned strike Grangemouth refinery begins shutdown
(about 1 hour later)
Staff at the Grangemouth oil refinery and petrochemical site are to begin preparing for a "cold shutdown" ahead of a planned 48-hour strike. Staff at the Grangemouth oil refinery and petrochemical plant have begun shutting down the facility ahead of a planned 48-hour strike.
Members of the Unite union are planning to walk out on Sunday in a row over the treatment of a union convener.Members of the Unite union are planning to walk out on Sunday in a row over the treatment of a union convener.
BBC Scotland understands management has instructed staff to begin closing the taps at the refinery, meaning no new oil will flow into it. Talks between the union and site operator Ineos started at 16:00.
Talks between the union and site operator Ineos are being held. Both sides have said, if the strike did go ahead, it was hoped the flow of fuel from the refinery would not be affected.
The negotiations were due to get under way at arbitration service Acas, in Glasgow, from 16:00. Unite said it had been "working tirelessly" over the weekend to secure the talks aimed at averting the strike.
Unite said it had been "working tirelessly" over the weekend to secure the talks aimed at averting the strike going ahead. Speaking as he arrived for the talks at the Acas conciliation service in Glasgow, Unite regional secretary Pat Rafferty said he was "optimistic" a solution could be agreed.
Ineos has warned that the threatened strike "could effectively shut much of Scotland" by disrupting fuel supply. Mr Rafferty added: "We certainly welcome the company's response in accepting the offer to come to Acas today, so we will be approaching the talks very much with an open mind, trying to look to get a resolution to this dispute.
A strike at the refinery, which processes up to 210,000 barrels of oil per day, could potentially disrupt the flow of Brent crude from the North Sea. "We have to be optimistic. We can't go in with an attitude that that's not going to be the case so we will be going in very much with the approach of trying to resolve this dispute to the betterment of all".
The talks were attended by Ineos UK chief executive Gary Haywood, who said his priority was to ensure any strike did not affect the fuel supply to Scotland.
The company had previously warned that the threatened strike "could effectively shut much of Scotland".
Mr Haywood said: "We are here for two reasons I would say. One reason is to discuss the ongoing investigation into (union convenor) Stephen Deans and the union's grievance over that matter.
"Secondly, the safe shutdown of the Grangemouth site. Safety is our prime concern and we are already well advanced in the shutdown and we would also like to determine the extent to which the union is willing to help us keep the North Sea pipeline flowing and to keep fuel flowing to the people of Scotland."
North Sea
But Mr Haywood said he did not know whether the talks would be able to stop the strike going ahead.
He added: "The site is in a dire state at the moment. We are losing £10m a month, we have invested £1bn in the site over the last six years and we do need to move the site on.
"So once we get over this short-term issue I really hope we can secure a future for the site."
Previously, the company labelled the union action as "completely irresponsible" while the union accused Ineos of "gunboat irresponsible diplomacy".
It had been feared a strike at the refinery, which processes up to 210,000 barrels of oil per day, could potentially disrupt the flow of Brent crude from the North Sea.
The Scottish and UK governments have been drawing up contingency plans and had called for more talks between the two sides.The Scottish and UK governments have been drawing up contingency plans and had called for more talks between the two sides.
Announcing the talks on Sunday night, Ineos Grangemouth chairman Calum MacLean said: "We have always been prepared to go to Acas if this helps to resolve a strike that Grangemouth petrochemical plant and refinery cannot afford.
"We hope to be able to resolve the dispute and address the financial issues that threaten the survival of the entire site."
Previously, the company labelled the union action as "completely irresponsible" while the union accused Ineos of "gunboat irresponsible diplomacy".'
Encouraging step'
Unite Scottish Secretary Pat Rafferty said: "We welcome Ineos's change of heart to join us at Acas.
"We've repeatedly urged the company to sit down with us at the conciliation service to resolve the issues surrounding the unfair treatment of our convenor and the future of Grangemouth.
"Over the weekend we have been working tirelessly to secure these talks and hope that the company will engage in them in an open constructive manner."
UK Energy Secretary Ed Davey said the talks were a "very welcome and encouraging step."UK Energy Secretary Ed Davey said the talks were a "very welcome and encouraging step."
He added: "I have worked hard with both sides to persuade them to attend talks with Acas and I am extremely pleased that this is now happening.He added: "I have worked hard with both sides to persuade them to attend talks with Acas and I am extremely pleased that this is now happening.
"Acas has the expertise to help both parties reach a sustainable solution for the company, the workforce and the whole economy.""Acas has the expertise to help both parties reach a sustainable solution for the company, the workforce and the whole economy."
A spokeswoman for the Scottish government said contingency planning had been under way since the strike was announced.A spokeswoman for the Scottish government said contingency planning had been under way since the strike was announced.
She said: "Ministers and officials have redoubled efforts to encourage Unite and Ineos to enter talks and we welcome the fact that they are now going to talk this afternoon.She said: "Ministers and officials have redoubled efforts to encourage Unite and Ineos to enter talks and we welcome the fact that they are now going to talk this afternoon.
"It is important that both sides have time and space to progress discussions, resolve the issues between them and move away from strike action.""It is important that both sides have time and space to progress discussions, resolve the issues between them and move away from strike action."
Ineos has said it will do all it can to "minimise the harm" of a strike.Ineos has said it will do all it can to "minimise the harm" of a strike.
The North Sea's Forties pipeline system could be affected because the Kinneil oil processing terminal - where oil from the Forties field comes ashore - relies on Grangemouth for its steam and power.
Official suspendedOfficial suspended
The dispute centres on union convener Stephen Deans, who was involved in the row over the selection of a Labour candidate in Falkirk.The dispute centres on union convener Stephen Deans, who was involved in the row over the selection of a Labour candidate in Falkirk.
Labour cleared Unite after an investigation of trying to rig the selection of a party candidate - claims that led to a major row between the union and Ed Miliband. Labour cleared Unite after an investigation into trying to rig the selection of a party candidate - claims that led to a major row between the union and Ed Miliband.
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.
Ineos said an investigation by "a third party" into Mr Deans' conduct was due to be completed by 25 October.Ineos said an investigation by "a third party" into Mr Deans' conduct was due to be completed by 25 October.
It recently launched a survival plan for Grangemouth, warning that the site would close by 2017 without investment and reduced costs. The company said the plant was losing £10m a month.It recently launched a survival plan for Grangemouth, warning that the site would close by 2017 without investment and reduced costs. The company said the plant was losing £10m a month.
The Grangemouth refinery provides most of Scotland's fuel. It is owned jointly by Ineos and PetroChina.The Grangemouth refinery provides most of Scotland's fuel. It is owned jointly by Ineos and PetroChina.