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| Grangemouth dispute: Ineos says petrochemical plant will close | Grangemouth dispute: Ineos says petrochemical plant will close |
| (35 minutes later) | |
| The petrochemical plant at the giant Grangemouth complex in central Scotland is to close. | The petrochemical plant at the giant Grangemouth complex in central Scotland is to close. |
| Ineos made the announcement following a meeting with the workforce at the plant and its associated oil refinery. | Ineos made the announcement following a meeting with the workforce at the plant and its associated oil refinery. |
| The company said a decision on whether to restart the refinery would be taken once the "threat of strike action" had been removed. | The company said a decision on whether to restart the refinery would be taken once the "threat of strike action" had been removed. |
| About 800 people are directly employed by the petrochemical plant, with more employed as sub-contractors. | About 800 people are directly employed by the petrochemical plant, with more employed as sub-contractors. |
| Workers leaving the staff meeting, which lasted about 20 minutes, told the BBC the decision was "shocking". | Workers leaving the staff meeting, which lasted about 20 minutes, told the BBC the decision was "shocking". |
| One member of staff claimed that Grangemouth Petrochemicals chairman Calum Maclean had been "smiling" when he made the announcement. | One member of staff claimed that Grangemouth Petrochemicals chairman Calum Maclean had been "smiling" when he made the announcement. |
| Another worker, who did not want to be named, said: "I feel sick. It's gone. There's no livelihoods left and we don't even know if we're going to get redundancy out of it. I hope they're happy with themselves." | |
| The worker, who appeared close to tears at points, said he could only listen to about 10 minutes of the meeting, before he felt he had to leave. | |
| He went on: "There are folk in there have a husband and wife work here. That's it. Folk will be lucky if they have a house at Christmas." | |
| Ineos said liquidators for the petrochemical plant would be appointed within a week. | Ineos said liquidators for the petrochemical plant would be appointed within a week. |
| Ineos chairman and founder Jim Ratcliffe had said at the weekend if the petrochemical plant closed it was likely the refinery would go too. | Ineos chairman and founder Jim Ratcliffe had said at the weekend if the petrochemical plant closed it was likely the refinery would go too. |
| The refinery provides most of the fuel to Scotland, the north of England and Northern Ireland. | The refinery provides most of the fuel to Scotland, the north of England and Northern Ireland. |
| In a statement released after the staff meeting, Ineos said: "The company made it clear that rejection of change would result in closure. Regrettably, the union advised union members to reject any form of change. | In a statement released after the staff meeting, Ineos said: "The company made it clear that rejection of change would result in closure. Regrettably, the union advised union members to reject any form of change. |
| "The outcome of the employee vote on the company's survival plan was a 50/50 split. | "The outcome of the employee vote on the company's survival plan was a 50/50 split. |
| "Within this, almost all of the administrative staff voted for the company's plan but a large majority of shop floor employees voted to reject it. | "Within this, almost all of the administrative staff voted for the company's plan but a large majority of shop floor employees voted to reject it. |
| "The shareholders met yesterday to consider the future of the business following the result of the employee vote. | "The shareholders met yesterday to consider the future of the business following the result of the employee vote. |
| "Sadly, the shareholders reached the conclusion that they could not see a future for Grangemouth without change and therefore could no longer continue to fund the business". | "Sadly, the shareholders reached the conclusion that they could not see a future for Grangemouth without change and therefore could no longer continue to fund the business". |
| The company added: "As a result of this decision, the directors of the petrochemicals business have had no option but to engage the services of a liquidator. It is anticipated that a liquidation process will commence in a week." | The company added: "As a result of this decision, the directors of the petrochemicals business have had no option but to engage the services of a liquidator. It is anticipated that a liquidation process will commence in a week." |
| Calum MacLean, chairman of Grangemouth Petrochemicals, said: "This is a hugely sad day for everyone at Grangemouth. | Calum MacLean, chairman of Grangemouth Petrochemicals, said: "This is a hugely sad day for everyone at Grangemouth. |
| "We have tried our hardest to convince employees of the need for change but unsuccessfully. There was only ever going to be one outcome to this story if nothing changed and we continued to lose money. | "We have tried our hardest to convince employees of the need for change but unsuccessfully. There was only ever going to be one outcome to this story if nothing changed and we continued to lose money. |
| "We still struggle to comprehend what has happened here. The employees were offered a chance to secure substantial new investment in the company, preserve their jobs and keep their salaries. Sadly this will no longer be the case." | "We still struggle to comprehend what has happened here. The employees were offered a chance to secure substantial new investment in the company, preserve their jobs and keep their salaries. Sadly this will no longer be the case." |
| Ministers - including the Scotland Secretary Alistair Carmichael and the Energy Secretary Ed Davey - are meeting in London to decide on a response to the decision. | |
| Mr Davey said he was "saddened" to hear of the closure, particularly because of the impact it will have on the workforce and local community. | |
| He added: "While respecting Ineos' right to make this decision, it is regrettable that both parties have not managed to negotiate a fair and equitable settlement that delivers a viable business model for the plant. | |
| "Even at this late stage, I urge Ineos to continue dialogue with the workforce, and government will offer help and support with this. | |
| "Ineos have informed us that the refinery will stay open and the management wish to restart full operations as soon as possible. We stand ready to help with discussions between the management and the union to ensure this can happen." | |
| Mr Davey said fuel supplies continued to be delivered as usual and there was no current risk of disruption to supplies. | |
| He added: "I continue to work very closely with the Scottish government, and other colleagues across government to share information with them." | |
| Labour has been granted an urgent question in the Commons on Grangemouth after Prime Minister's Questions. | |
| Labour MP Michael Connarty, whose constituency includes Grangemouth, said the people of Scotland and the workers at the plant had been "betrayed" by Ineos. | |
| 'Other players' | 'Other players' |
| Mr Connarty said he was still hopeful that a buyer could be found for the facility. | |
| 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. | |
| 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. |
| 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 the selection of a Labour candidate in Falkirk, where he is chairman of the constituency party. | 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 the selection of a Labour candidate in Falkirk, where he is chairman of the constituency party. |
| He was suspended, then reinstated, and is facing an internal investigation, which is due to report on Friday. | He was suspended, then reinstated, and is facing an internal investigation, which is due to report on Friday. |
| The dispute has since widened to the future of the entire site, with Ineos warning that it will close without fresh investment and changes to pensions and other terms and conditions. | The dispute has since widened to the future of the entire site, with Ineos warning that 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 has 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". | 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". |