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| Version 1 | Version 2 |
|---|---|
| Ineos closes Grangemouth petrochemicals plant | Ineos closes Grangemouth petrochemicals plant |
| (about 2 hours later) | |
| The petrochemical plant at Grangemouth is to close following a bitter row over pay and conditions, putting 800 workers' jobs at risk. | The petrochemical plant at Grangemouth is to close following a bitter row over pay and conditions, putting 800 workers' jobs at risk. |
| Owner Ineos has decided to shut the petrochemical side of the complex, which is situated next to the firm's oil refinery. | Owner Ineos has decided to shut the petrochemical side of the complex, which is situated next to the firm's oil refinery. |
| Workers were given the grim news at a meeting with Ineos's chairman, Calum MacLean. | Workers were given the grim news at a meeting with Ineos's chairman, Calum MacLean. |
| In an urgent question on Grangemouth in parliament, energy and climate change secretary Ed Davey told MPs repeatedly that the government wants the plant to stay open if at all possible. It would still consider a business case to provide investment to help keep the plant running. | |
| Davey also confirmed that detailed contingency plans have been drawn up to protect firms and customers from running out of fuel and chemical supplies. | |
| He will meet with MPs later on Wednesday to discuss the issue in more detail. | |
| Downing Street has insisted the closure of the Grangemouth refinery would not pose a threat to fuel supplies, after the AA warned it could hit petrol prices. | Downing Street has insisted the closure of the Grangemouth refinery would not pose a threat to fuel supplies, after the AA warned it could hit petrol prices. |
| The prime minister's spokesman said it was disappointing that the petrochemicals side of the plant has closed and called on "both parties ... to continue their dialogue" over the future of the refinery. | The prime minister's spokesman said it was disappointing that the petrochemicals side of the plant has closed and called on "both parties ... to continue their dialogue" over the future of the refinery. |
| Number 10 also dismissed speculation that the plant could be nationalised, saying it was a matter for the unions and the plant's owner, Ineos, to sort resolve. | Number 10 also dismissed speculation that the plant could be nationalised, saying it was a matter for the unions and the plant's owner, Ineos, to sort resolve. |
| The comments come after Edmund King, the president of the AA, warned that petrol prices could rise if Grangemouth and other European refineries close down. | The comments come after Edmund King, the president of the AA, warned that petrol prices could rise if Grangemouth and other European refineries close down. |
| "The AA is concerned with the impact of this refinery closure," he said. The European commodity trading houses have been predicting the loss of five to six refinery plants over the next two years. | "The AA is concerned with the impact of this refinery closure," he said. The European commodity trading houses have been predicting the loss of five to six refinery plants over the next two years. |
| "In March to April of last year, with the closure of refineries and the impending start of the US motoring season, wholesale prices went up by 20%, adding 8p to 10p to a litre of petrol. The spike was short-lived because US drivers cut back and some of the refineries were bought. However, the damage was done and a new UK petrol record (142.48p a litre) was set." | "In March to April of last year, with the closure of refineries and the impending start of the US motoring season, wholesale prices went up by 20%, adding 8p to 10p to a litre of petrol. The spike was short-lived because US drivers cut back and some of the refineries were bought. However, the damage was done and a new UK petrol record (142.48p a litre) was set." |
| Bitter dispute | Bitter dispute |
| The announcement follows the passing of a deadline on a survival plan put to employees, which asked them to accept changes to pensions and other terms and conditions. | |
| The Unite union said about 680 of the site's 1,370-strong workforce had rejected the company's proposals, which include a pay freeze for 2014-16, removal of a bonus up to 2016, a reduced shift allowance and ending of the final salary pension scheme. | |
| Ineos said its owner, Jim Ratcliffe, and other shareholders met on Tuesday to study the response from the workforce to their survival plan, and wanted the employees to be the first to know of any decision the company made. | |
| A dispute over pay and conditions at the oil refinery remains unresolved. | A dispute over pay and conditions at the oil refinery remains unresolved. |
| Unite has accused the company of "playing Russian roulette" with the future of Grangemouth, the biggest industrial site in Scotland, and is backing any efforts by the Scottish government to find a new buyer for the oil refinery and petrochemical complex. | Unite has accused the company of "playing Russian roulette" with the future of Grangemouth, the biggest industrial site in Scotland, and is backing any efforts by the Scottish government to find a new buyer for the oil refinery and petrochemical complex. |
| Ineos sent a letter to workers last Thursday asking them to indicate their rejection or acceptance of the plan. | Ineos sent a letter to workers last Thursday asking them to indicate their rejection or acceptance of the plan. |
| It said those who supported the survival plan would receive a transitional payment of up to £15,000. | It said those who supported the survival plan 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 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, then was subject to an internal investigation, which is due to report on Friday. | He was suspended, then reinstated, then was subject to 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 would 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 would close without fresh investment and changes to pensions and other terms and conditions. |
| The company said the plant, which has been shut down since last week because of the dispute, is losing £10m a month. | The company said the plant, which has been shut down since last week because of the dispute, is losing £10m a month. |
| Ineos had said it was ready to invest £300m in Grangemouth, but only if workers agreed to the new terms. | Ineos had said it was ready to invest £300m in Grangemouth, but only if workers agreed to the new terms. |
| View from the workforce | View from the workforce |
| Gordon Stewart joined the chemicals business five months ago. He is a Unite member. | Gordon Stewart joined the chemicals business five months ago. He is a Unite member. |
| "I was attracted by a set of pay and conditions and I left a good job somewhere else. They have explained that because of the union vote they are going to close the petrochemicals side. They talked about finding a buyer but they were not very hopeful because it's a distressed business. The assets on the chemicals side probably will opening in the short term but further out it's not clear. | "I was attracted by a set of pay and conditions and I left a good job somewhere else. They have explained that because of the union vote they are going to close the petrochemicals side. They talked about finding a buyer but they were not very hopeful because it's a distressed business. The assets on the chemicals side probably will opening in the short term but further out it's not clear. |
| "Despite the union activity I still took it as a shock the way it has been done so abruptly. It's as if it was preordained. I have put a lot of faith in the union and I still hope they can do something about it but they may have acted too quickly. Everyone will be affected: people contractually obliged working here and businesses associated with the place. The way Calum MacLean walked in you could tell what he was going to say before he started speaking. He was ashen faced." Asked if there was any hope Ineos might negotiate: "I certainly hope so." | "Despite the union activity I still took it as a shock the way it has been done so abruptly. It's as if it was preordained. I have put a lot of faith in the union and I still hope they can do something about it but they may have acted too quickly. Everyone will be affected: people contractually obliged working here and businesses associated with the place. The way Calum MacLean walked in you could tell what he was going to say before he started speaking. He was ashen faced." Asked if there was any hope Ineos might negotiate: "I certainly hope so." |
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