Grangemouth dispute: Ineos to address workers on site's future
Grangemouth dispute: Ineos says petrochemical plant will close
(35 minutes later)
The operator of the Grangemouth oil refinery and petrochemical plant is due to make an announcement on the site's future.
The petrochemical plant at the giant Grangemouth complex is to close.
Ineos said it would inform the workforce of its plans, following a shareholders meeting on Tuesday.
Ineos made the announcement following a meeting with its workforce at the plant and its associated oil refinery.
An ongoing dispute between the company and the Unite union has resulted in the plant being temporarily closed.
The facility has been shut for a week due to an ongoing dispute between Ineos and the Unite union.
PetroChina, part owner of Grangemouth, has now called for consensus between the operators and the union.
Ineos chairman Jim Ratcliffe said at the weekend if the petrochemical plant closed it was likely the refinery would go too.
In a statement, the company said: "We hope a consensus can be reached between Ineos, Unite union and other parties involved."
The company's shareholders had met in London on Tuesday to discuss the response of staff to proposed changes to pay and conditions.
In addition, the Scottish and UK governments have urged both sides to get back round the negotiating table.
Workers at the site had been given until 18:00 on Monday to agree to the changes, which included a pay freeze and downgrading of pensions.
Company shareholders met in London to discuss the outcome of the firm's challenge to the workforce to accept new terms and conditions.
Staff at the site had been given until 18:00 on Monday to agree to changes, which include a pay freeze and downgrading of pensions.
Unite said half of the 1,350-strong workforce had rejected the proposed changes to contracts.
Unite said half of the 1,350-strong workforce had rejected the proposed changes to contracts.
Scottish Finance Secretary John Swinney said the Scottish government had been trying to find a buyer for the site and has had discussions "with other players".
Speaking on Monday, he said: "In view of the clear danger of a stalemate developing between the owners and the union, the Scottish government has indeed been actively pursuing alternative options.
"This is what the people of Scotland expect. However, the overwhelming priority is to get the Grangemouth plant back into operation."
Scottish Secretary Alistair Carmichael said he was still hopeful that the parties would get back round the negotiating table.
He told BBC Radio Scotland's Good Morning Scotland programme: "You have to assume that if it were Ineos's intention simply to lock the door and walk away from Grangemouth that they would not have gone to the trouble that they have been to in the last few weeks.
"I'm hopeful that there will still be an opportunity. Once we know what Ineos's position is then there has to be something about which to talk and at that point everybody has to get back to Acas and start talking about it."
Mr Carmichael said discussion regarding a new owner for the site was premature ahead of Ineos's announcement.
Bitter dispute
Last week, Ineos sent a letter to all workers, asking them to indicate their rejection or acceptance of what it calls its "survival plan" for the site.
It said those who supported the proposals would receive a transitional payment of up to £15,000.
The two sides have been embroiled in a bitter dispute for weeks, initially over the treatment of Unite convenor Stephen Deans, who was involved in the row over a selection of a Labour candidate in Falkirk.
The dispute has since widened to the future of the entire site, with Ineos warning it will close without fresh investment and changes to pensions and other terms and conditions.
The company has said the plant, which has been shut down for a week because of the dispute, is losing £10m a month.
The company has said the plant, which has been shut down for a week because of the dispute, is losing £10m a month.
Ineos said it is ready to invest £300m in Grangemouth, but only if workers agree to the new terms and conditions.
Ineos has said it is ready to invest £300m in Grangemouth, but only if workers agree to the new terms and conditions.
Scottish Finance Secretary John Swinney revealed on Monday that the Scottish government had been trying to find a buyer for the site, and has had discussions "with other players".
