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Grangemouth dispute: Buyer sought for plant, says Scottish government | Grangemouth dispute: Buyer sought for plant, says Scottish government |
(35 minutes later) | |
The Scottish government is trying to find a buyer for the Grangemouth refinery and petrochemicals plant. | The Scottish government is trying to find a buyer for the Grangemouth refinery and petrochemicals plant. |
Scotland's Finance Secretary John Swinney said ministers had been having discussions "with other players". | Scotland's Finance Secretary John Swinney said ministers had been having discussions "with other players". |
An on-going dispute between owners Ineos and the union Unite has resulted in the plant being temporarily closed. | An on-going dispute between owners Ineos and the union Unite has resulted in the plant being temporarily closed. |
Grangemouth plays an important part in bringing ashore North Sea oil and supplies petrol and diesel to the whole of Scotland and the north of England. | Grangemouth plays an important part in bringing ashore North Sea oil and supplies petrol and diesel to the whole of Scotland and the north of England. |
Operator Ineos has said it will make an announcement to workers on Wednesday on the future of the complex. | |
Ministers at Westminster were meeting to discuss the dispute at Grangemouth. BBC Scotland understands the Department for Energy and Climate Change and the Scotland Office are involved in the talks. | |
Speaking to BBC Radio Scotland's Good Morning Scotland programme, Mr Swinney said: "I don't think it will come as any surprise to anyone that the government is looking for alternative options and there certainly will be other players around the globe interested in this particular plant. | Speaking to BBC Radio Scotland's Good Morning Scotland programme, Mr Swinney said: "I don't think it will come as any surprise to anyone that the government is looking for alternative options and there certainly will be other players around the globe interested in this particular plant. |
"We have certainly had discussions with other players and the Scottish government will engage in any discussions that are helpful to ensure Grangemouth can continue to make a major contribution to the health and well-being of the Scottish economy." | "We have certainly had discussions with other players and the Scottish government will engage in any discussions that are helpful to ensure Grangemouth can continue to make a major contribution to the health and well-being of the Scottish economy." |
He added that government ownership was "not appropriate" and that there was a "buyer out there". | He added that government ownership was "not appropriate" and that there was a "buyer out there". |
The owners of the Grangemouth complex are to meet later to decide on the plant's fate. | The owners of the Grangemouth complex are to meet later to decide on the plant's fate. |
Responding to Mr Swinney's comments on talks about a takeover of the site, Declan Sealy, a director for Ineos at Grangemouth, said: "Like every business, we look at buying and selling assets and businesses all the time. | Responding to Mr Swinney's comments on talks about a takeover of the site, Declan Sealy, a director for Ineos at Grangemouth, said: "Like every business, we look at buying and selling assets and businesses all the time. |
"Our focus here today is on trying to implement a survival plan that brings a future for Grangemouth." | "Our focus here today is on trying to implement a survival plan that brings a future for Grangemouth." |
However, it is not thought there has been any discussion with Ineos of a sale or a different operator. | However, it is not thought there has been any discussion with Ineos of a sale or a different operator. |
Unite said it would support the Scottish government in whatever way it could "to ensure a secure future for Grangemouth and its working community". | Unite said it would support the Scottish government in whatever way it could "to ensure a secure future for Grangemouth and its working community". |
The union's Scottish secretary, Pat Rafferty, said Mr Swinney's intervention was a "welcome" one. | The union's Scottish secretary, Pat Rafferty, said Mr Swinney's intervention was a "welcome" one. |
He added: "This site is so key to the Scottish economy, so key to the UK economy, it cannot be treated the way it is being treated. | He added: "This site is so key to the Scottish economy, so key to the UK economy, it cannot be treated the way it is being treated. |
"It cannot be used in a Russian roulette type of way of 'we get what we want or we close this site down'. It is just so irresponsible and that type of behaviour cannot be tolerated. | "It cannot be used in a Russian roulette type of way of 'we get what we want or we close this site down'. It is just so irresponsible and that type of behaviour cannot be tolerated. |
"This site cannot close, that's not an option and it does have a future, a really good, bright future." | "This site cannot close, that's not an option and it does have a future, a really good, bright future." |
Unite union said half of the 1,350-strong workforce had rejected Ineos' proposed change to contracts. | Unite union said half of the 1,350-strong workforce had rejected Ineos' proposed change to contracts. |
The company gave employees until 18:00 on Monday to accept plans, including a pay freeze and downgrading of pensions. | The company gave employees until 18:00 on Monday to accept plans, including a pay freeze and downgrading of pensions. |
The union said the refusal of the workforce to accept the new contract terms was a mandate to return to talks and fire up the plant. | The union said the refusal of the workforce to accept the new contract terms was a mandate to return to talks and fire up the plant. |
It was shut down last week by Ineos in response to a strike threat over the disciplining of a union representative at the complex. | It was shut down last week by Ineos in response to a strike threat over the disciplining of a union representative at the complex. |
Ineos had said the plant would close without new investment and changes to workers' terms and conditions. | Ineos had said the plant would close without new investment and changes to workers' terms and conditions. |
Senior figures at Ineos, which operates and owns most of the 2.6 sq-mile site, are to consider the workforce's response to the offer. | Senior figures at Ineos, which operates and owns most of the 2.6 sq-mile site, are to consider the workforce's response to the offer. |
In doing so, they will also look at the patterns of the result across the plant, and across its varied technical skills. | In doing so, they will also look at the patterns of the result across the plant, and across its varied technical skills. |
The firm said it would communicate the shareholders' views directly to the workforce on Wednesday. | The firm said it would communicate the shareholders' views directly to the workforce on Wednesday. |
However, Ineos has warned a decision on the plant's fate could take several days. | However, Ineos has warned a decision on the plant's fate could take several days. |
A spokesman added: "Ineos is now considering the numbers of employees that have given their support to its survival plan. | A spokesman added: "Ineos is now considering the numbers of employees that have given their support to its survival plan. |
"Consultations on the survival plan formally began last Thursday. It will take 45 days before any changes to terms and conditions can be introduced and 60 days before any changes to pensions can be implemented." | "Consultations on the survival plan formally began last Thursday. It will take 45 days before any changes to terms and conditions can be introduced and 60 days before any changes to pensions can be implemented." |
Stalemate danger | Stalemate danger |
The plan includes freezing the basic salary and offering no bonuses until at least the end of 2016. | The plan includes freezing the basic salary and offering no bonuses until at least the end of 2016. |
The shift allowance would also be reduced and pensions transferred from a final salary to a defined contribution scheme. | The shift allowance would also be reduced and pensions transferred from a final salary to a defined contribution scheme. |
The company has said no job cuts were expected. It also said employees who support the plan at this stage would receive a transitional payment of up to £15,000 and an enhanced employer contribution to their pension. | The company has said no job cuts were expected. It also said employees who support the plan at this stage would receive a transitional payment of up to £15,000 and an enhanced employer contribution to their pension. |
Majority shareholder Jim Ratcliffe has said if the petro-chemical plant goes, the neighbouring refinery is unlikely to survive. | Majority shareholder Jim Ratcliffe has said if the petro-chemical plant goes, the neighbouring refinery is unlikely to survive. |
He has also said Ineos may not be willing to pay the cost of a prolonged shutdown. | He has also said Ineos may not be willing to pay the cost of a prolonged shutdown. |
Finance Secretary Mr Swinney also repeated the Scottish government's calls for the firm to "fire up the plant" and urged both sides to avoid "the clear danger of a stalemate". | Finance Secretary Mr Swinney also repeated the Scottish government's calls for the firm to "fire up the plant" and urged both sides to avoid "the clear danger of a stalemate". |
He added: "The trade union has given, in my estimation, a very clear and unequivocal commitment that there will be no industrial action this side of Christmas, and indeed last night the union said there would be no strike action well into 2014. | He added: "The trade union has given, in my estimation, a very clear and unequivocal commitment that there will be no industrial action this side of Christmas, and indeed last night the union said there would be no strike action well into 2014. |
"I think we should take these commitments at face value, accept them, and get the plant operating again." | "I think we should take these commitments at face value, accept them, and get the plant operating again." |
The refinery, which has an annual capacity of 10 million tonnes, provides most of the fuel in Scotland, Northern England and Northern Ireland. | The refinery, which has an annual capacity of 10 million tonnes, provides most of the fuel in Scotland, Northern England and Northern Ireland. |
The petrochemicals facility at the site manufactures more than two million tonnes of chemical products per year, which are later transformed into essential items such as bottles and pipes, cabling and insulation and food packaging. | The petrochemicals facility at the site manufactures more than two million tonnes of chemical products per year, which are later transformed into essential items such as bottles and pipes, cabling and insulation and food packaging. |