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| Ineos refinery pay cut plan put to Grangemouth workers | Ineos refinery pay cut plan put to Grangemouth workers |
| (about 7 hours later) | |
| Workers at the Grangemouth complex will hear later about cuts the plant's owners want to see in pay and pensions. | Workers at the Grangemouth complex will hear later about cuts the plant's owners want to see in pay and pensions. |
| Ineos said Grangemouth is "financially distressed" and must reduce costs. | Ineos said Grangemouth is "financially distressed" and must reduce costs. |
| But Unite the union has hit back with an analysis of accounts suggesting Ineos is in better health than it is saying. | |
| Unite said it has "blown a hole" in the claims of losses, and that the Swiss-based company has been "pulling the wool" over the country's eyes. | |
| On Wednesday, Ineos said Grangemouth "is shut and remains shut", despite Unite's strike threat being called off. | On Wednesday, Ineos said Grangemouth "is shut and remains shut", despite Unite's strike threat being called off. |
| The company is putting proposed contract changes to the workforce, expecting an answer by Monday. The company will discuss the complex's future with shareholders on Tuesday. | The company is putting proposed contract changes to the workforce, expecting an answer by Monday. The company will discuss the complex's future with shareholders on Tuesday. |
| Ineos director Tom Crotty told the BBC's Newsnight Scotland programme: "We will be explaining in detail to the workforce what we need to ensure a successful future. | |
| "We will then judge how the workforce are reacting to that, and then we will take a decision as to what to do with the plant. | |
| "If the workforce don't agree then we need to sit down and decide what we will do. We have made no decisions about that at this stage at all." | |
| 'Negative earnings' | 'Negative earnings' |
| Ineos has supported its claims of "financial distress" with evidence from its auditor, PwC. | Ineos has supported its claims of "financial distress" with evidence from its auditor, PwC. |
| This showed negative earnings of £110m between 2010 and this year, and capital expenditure of £468m. This has been described as a loss of £579m. | This showed negative earnings of £110m between 2010 and this year, and capital expenditure of £468m. This has been described as a loss of £579m. |
| However, Unite asked Richard Murphy, an accountant and tax campaigner, to assess the claims, and to find out more about Ineos' finances. | However, Unite asked Richard Murphy, an accountant and tax campaigner, to assess the claims, and to find out more about Ineos' finances. |
| He concluded that the claim of a £579m "loss" is misleading, as it includes capital spending and is cash flow. | |
| Mr Murphy admitted that it is hard to find which parts of the Ineos business cover operations at Grangemouth. | Mr Murphy admitted that it is hard to find which parts of the Ineos business cover operations at Grangemouth. |
| But his assessment of the company called Ineos Chemicals Grangemouth Ltd suggests that the company has added special one-off measures to make the accounts look bad, including the write-off in valuation of the petro-chemical plant. | |
| Mr Murphy says a deferred tax allowance of £117m implies that the company expects to make around £500m in profits over several years. | Mr Murphy says a deferred tax allowance of £117m implies that the company expects to make around £500m in profits over several years. |
| His assessment says the pension fund gained £7m, sales grew 50% and operating profit grew by 56%. | His assessment says the pension fund gained £7m, sales grew 50% and operating profit grew by 56%. |
| 'Contempt' | 'Contempt' |
| Unite says the findings "blow a hole" in the Ineos financial claims. Pat Rafferty, regional secretary of Unite, commented: "We believe the company is using fancy accounting tricks to pull the wool over the country's eyes and treat us with contempt. | Unite says the findings "blow a hole" in the Ineos financial claims. Pat Rafferty, regional secretary of Unite, commented: "We believe the company is using fancy accounting tricks to pull the wool over the country's eyes and treat us with contempt. |
| "The company gives the impression it is broke and it may need to close the Grangemouth site, but we believe this is just a ploy to justify attacking its workforce and to demand government handouts". | "The company gives the impression it is broke and it may need to close the Grangemouth site, but we believe this is just a ploy to justify attacking its workforce and to demand government handouts". |
| An Ineos source confirmed that the complex structure of its finances means the analysis has failed to account for internal transfers and loans and that it is "naive". | An Ineos source confirmed that the complex structure of its finances means the analysis has failed to account for internal transfers and loans and that it is "naive". |
| The BBC understands that a report on the investigation into Stephen Deans, the union representative whose case initially triggered the Grangemouth dispute, will be delivered to Ineos by legal advisers on Thursday. | The BBC understands that a report on the investigation into Stephen Deans, the union representative whose case initially triggered the Grangemouth dispute, will be delivered to Ineos by legal advisers on Thursday. |
| The company has said previously the investigation would be completed by 25 October. | The company has said previously the investigation would be completed by 25 October. |