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| Grangemouth refinery 'to stay shut' | |
| (about 1 hour later) | |
| The Grangemouth oil refinery and petrochemical plant is "shut and will remain shut", operator Ineos has said. | |
| A spokesman for the company described the facility as "financially distressed" and said it would put a proposal to its workforce on Thursday. | |
| Ineos said it expected a response to the proposal on Monday. | |
| The move followed the Unite union calling off a 48-hour strike which had been due to begin at 07:00 on Sunday. | |
| Unite claimed Ineos representatives had "walked away" after 16 hours of talks at the Acas conciliation service in Glasgow. | Unite claimed Ineos representatives had "walked away" after 16 hours of talks at the Acas conciliation service in Glasgow. |
| The union said it had cancelled the strike to protect the facility in central Scotland from its owner's "scandalous behaviour". | |
| 'Further damage' | |
| BBC Scotland understands that parts of the plant which had already been shut down ahead of the planned strike have not yet been started up again. | BBC Scotland understands that parts of the plant which had already been shut down ahead of the planned strike have not yet been started up again. |
| Ineos has previously warned that Grangemouth is losing £10m a month and will close in 2017 without investment and cost-cutting. | |
| A spokesman for the company said on Wednesday afternoon: "Grangemouth is shut down and will remain shut down. | |
| "Grangemouth is financially distressed. The industrial action called by Unite the Union has inflicted significant further damage on the company. | |
| "Ineos will put a proposal to the workforce tomorrow and expects a response on Monday, after the weekend. The company will review its position with its shareholders on Tuesday." | |
| The dispute has centred on the treatment of union convenor Stephen Deans. | The dispute has centred on the treatment of union convenor Stephen Deans. |
| Unite's Scottish secretary Pat Rafferty earlier said a marathon session of talks, which began on Tuesday afternoon, had broken up at 05:00 after failing to resolve the bitter row. | |
| Mr Rafferty said: "We are outraged that Ineos representatives walked away from Acas talks, after 16 hours of negotiation and on the cusp of an agreement, for the ludicrous reason that Ineos chairman Jim Ratcliffe instructed his management representatives to demand an apology on his behalf. | Mr Rafferty said: "We are outraged that Ineos representatives walked away from Acas talks, after 16 hours of negotiation and on the cusp of an agreement, for the ludicrous reason that Ineos chairman Jim Ratcliffe instructed his management representatives to demand an apology on his behalf. |
| "Unite offered Ineos every proposal we could practically make, specifically an offer to enter into negotiations under the auspices of Acas to secure the future of Grangemouth with the immediate call-off of all industrial action and a guarantee of no strikes during these negotiations. | "Unite offered Ineos every proposal we could practically make, specifically an offer to enter into negotiations under the auspices of Acas to secure the future of Grangemouth with the immediate call-off of all industrial action and a guarantee of no strikes during these negotiations. |
| "However at 5am this morning Acas representatives informed us that we could not conclude an agreement to take to our members because a list of fresh demands were placed upon us and because 'Jim wants an apology' and that this was 'a deal-breaker'. | "However at 5am this morning Acas representatives informed us that we could not conclude an agreement to take to our members because a list of fresh demands were placed upon us and because 'Jim wants an apology' and that this was 'a deal-breaker'. |
| "I have never came across anything like this in over 30 years of employment relations and it is utterly reprehensible. | "I have never came across anything like this in over 30 years of employment relations and it is utterly reprehensible. |
| "It is absolutely incredible that the future of this site, its workforce - both permanent and contracted employees - and the national interest has been totally compromised by one man's out of control ego." | "It is absolutely incredible that the future of this site, its workforce - both permanent and contracted employees - and the national interest has been totally compromised by one man's out of control ego." |
| 'Full production' | 'Full production' |
| Mr Rafferty accused Ineos of running the plant into a "damaging cold shutdown" which would impact on fuel production and supply across Scotland. | Mr Rafferty accused Ineos of running the plant into a "damaging cold shutdown" which would impact on fuel production and supply across Scotland. |
| He said: "The safety and integrity of the site and the local population are now paramount and we have an obligation to ensure that Ineos does not permanently decimate the plant's assets and the workforce with this cold shutdown. | He said: "The safety and integrity of the site and the local population are now paramount and we have an obligation to ensure that Ineos does not permanently decimate the plant's assets and the workforce with this cold shutdown. |
| "As a result, Unite will now call off all industrial action with immediate effect in order to protect this national asset from the scandalous behaviour of its owner. | "As a result, Unite will now call off all industrial action with immediate effect in order to protect this national asset from the scandalous behaviour of its owner. |
| "The plant should now start the return to full production and there is no excuse for this not to happen." | "The plant should now start the return to full production and there is no excuse for this not to happen." |
| Speaking ahead of the Ineos statement, Scottish Finance Secretary John Swinney welcomed the announcement that the strike would not be going ahead. | |
| But he said it was "essential" that Ineos and the union continued discussions to secure the long-term future of the site. | But he said it was "essential" that Ineos and the union continued discussions to secure the long-term future of the site. |
| Mr Swinney added: "I have been encouraging both the company and the trades union to have these discussions at Acas and whilst no final agreement has been reached, Acas represents the best place to host and conclude those discussions. | Mr Swinney added: "I have been encouraging both the company and the trades union to have these discussions at Acas and whilst no final agreement has been reached, Acas represents the best place to host and conclude those discussions. |
| "The Scottish government will speak to both parties to encourage them to actively pursue agreement around the long-term future of the site." | "The Scottish government will speak to both parties to encourage them to actively pursue agreement around the long-term future of the site." |
| Supply routes | Supply routes |
| UK Energy Secretary Ed Davey said: "I am pleased that Unite have called off this weekend's strike. | UK Energy Secretary Ed Davey said: "I am pleased that Unite have called off this weekend's strike. |
| "I would urge both parties to continue to talk with the help of Acas in order to reach a fair, sustainable resolution of their differences and ensure the long-term future of the Grangemouth complex. | "I would urge both parties to continue to talk with the help of Acas in order to reach a fair, sustainable resolution of their differences and ensure the long-term future of the Grangemouth complex. |
| "We have been working closely with the fuel industry and Scottish government to put robust alternative fuel supply routes in place in case the refinery is forced to close." | "We have been working closely with the fuel industry and Scottish government to put robust alternative fuel supply routes in place in case the refinery is forced to close." |
| Mr Deans was involved in the row over the selection of a Labour candidate in Falkirk, where he is chairman of the constituency party. | Mr Deans was involved in the row over the selection of a Labour candidate in Falkirk, where he is chairman of the constituency party. |
| He was suspended by Ineos and later reinstated, but is facing an internal investigation by the company over issues linked to the Falkirk affair. | He was suspended by Ineos and later reinstated, but is facing an internal investigation by the company over issues linked to the Falkirk affair. |