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Grangemouth dispute: Union 'positive' over talks with Ineos Grangemouth dispute: Union 'embraces' Ineos survival plan
(35 minutes later)
Union leaders have voiced optimism after meeting management to discuss the future of the closure-threatened Grangemouth petrochemical plant.Union leaders have voiced optimism after meeting management to discuss the future of the closure-threatened Grangemouth petrochemical plant.
The Unite union said it had offered concessions during the discussions on Thursday morning. The Unite union said it had decided to "embrace" a survival plan put forward by owner Ineos, "warts and all".
All 800 employees were told they would lose their jobs when owner Ineos announced the closure of the facility. All 800 employees were told they would lose their jobs when Ineos announced the closure on Wednesday.
Employees had rejected proposals by the firm to end their final salary pension scheme and cut shift allowances. Workers had rejected proposals by the firm to end their final salary pension scheme and cut shift allowances.
Speaking after the talks, Unite general secretary Len McCluskey said: "I feel very positive about our objective of making certain that the plant stays open. Obviously now it will be in the hands of Ineos.Speaking after the talks, Unite general secretary Len McCluskey said: "I feel very positive about our objective of making certain that the plant stays open. Obviously now it will be in the hands of Ineos.
"I'm optimistic that we will have a positive response from Ineos in the next 24 hours or so.""I'm optimistic that we will have a positive response from Ineos in the next 24 hours or so."
Ineos director, Tom Crotty, said the management team at Grangemouth would listen to what the union Unite would be saying. Before the meeting, Ineos director Tom Crotty said the management team at Grangemouth would listen to what the union Unite would be saying.
Speaking before the talks, he told BBC Radio Scotland's Good Morning Scotland programme: "If they believe there is substantial differences in where we are now then clearly they have a duty to take that back to the shareholders." He told BBC Radio Scotland's Good Morning Scotland programme: "If they believe there is substantial differences in where we are now then clearly they have a duty to take that back to the shareholders."
Talks hopes
Unite remained hopeful, along with the Scottish and UK governments, that Ineos would reverse its decision.Unite remained hopeful, along with the Scottish and UK governments, that Ineos would reverse its decision.
The company had previously said that while further meetings would be held in the coming days to discuss redundancies, there were "no prospects" of returning to conciliation service Acas to revisit the decision to close the petrochemical plant.The company had previously said that while further meetings would be held in the coming days to discuss redundancies, there were "no prospects" of returning to conciliation service Acas to revisit the decision to close the petrochemical plant.
Finance Secretary John Swinney said he hoped the talks between the management and union leaders would be "constructive and successful" Scottish Finance Secretary John Swinney and Scottish Secretary Alistair Carmichael are expected to hold talks at Grangemouth on Thursday afternoon.
He added: "I hope that at this very, very, very late stage in the process there is a willingness to listen to and to consider the proposals being put forward. Mr Swinney had earlier said that he hoped the talks between the management and union leaders would be "constructive and successful"
He said: "I hope that at this very, very, very late stage in the process there is a willingness to listen to and to consider the proposals being put forward.
"Everybody is agreed that this plant has a strong future with the necessary investment and that is why the Scottish government is willing to be a player in that.""Everybody is agreed that this plant has a strong future with the necessary investment and that is why the Scottish government is willing to be a player in that."
Previously, Ineos said it was ready to invest £300m in Grangemouth if workers agreed to the new terms and conditions.Previously, Ineos said it was ready to invest £300m in Grangemouth if workers agreed to the new terms and conditions.
The company said it had decided to close the plant because half the workforce had refused to accept the cost-cutting plan essential for the facility's survival.The company said it had decided to close the plant because half the workforce had refused to accept the cost-cutting plan essential for the facility's survival.
Mr Crotty said: "The shareholders, after the vote on Monday, and quite understandably, took a view that if the workforce had rejected that £300m investment then how were they going to go ahead and make it if the workforce were not behind that?"Mr Crotty said: "The shareholders, after the vote on Monday, and quite understandably, took a view that if the workforce had rejected that £300m investment then how were they going to go ahead and make it if the workforce were not behind that?"
About 800 of the 1,370 people directly employed at the Grangemouth complex work at the petrochemical plant, with many more working there as contractors.About 800 of the 1,370 people directly employed at the Grangemouth complex work at the petrochemical plant, with many more working there as contractors.
The dispute at the site, near Falkirk, began over the treatment of a Unite union official and escalated to the threat of strike action.The dispute at the site, near Falkirk, began over the treatment of a Unite union official and escalated to the threat of strike action.
This was dropped but the operator shut down the plant and issued an offer of revised terms and conditions in a "survival plan", which was rejected by union members.This was dropped but the operator shut down the plant and issued an offer of revised terms and conditions in a "survival plan", which was rejected by union members.
Ineos chairman and founder Jim Ratcliffe had said at the weekend that if the petrochemical plant closed it was likely the neighbouring refinery would go as well.Ineos chairman and founder Jim Ratcliffe had said at the weekend that if the petrochemical plant closed it was likely the neighbouring refinery would go as well.
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.
Ineos had said liquidators for the petrochemical plant would be appointed within a week.Ineos had said liquidators for the petrochemical plant would be appointed within a week.
Unite's Scottish secretary Pat Rafferty said the union had made further proposals in an effort to "stave off catastrophic job losses".Unite's Scottish secretary Pat Rafferty said the union had made further proposals in an effort to "stave off catastrophic job losses".
Political moves 'Critical role'
Falkirk Council has announced plans to set up a task force to respond to the closure plans, describing the move as "devastating news" for Grangemouth and the local area.Falkirk Council has announced plans to set up a task force to respond to the closure plans, describing the move as "devastating news" for Grangemouth and the local area.
A joint statement from all council members said: "The planned closure will have a massive impact on the future of our communities.A joint statement from all council members said: "The planned closure will have a massive impact on the future of our communities.
"Falkirk Council has a critical role in supporting our communities through this difficult time and we are committed to working together in the best interests of the area."Falkirk Council has a critical role in supporting our communities through this difficult time and we are committed to working together in the best interests of the area.
"As well as the 800 Ineos jobs in the petrochemical plant directly affected, the plant is a major contributor to the wider local and national economy."As well as the 800 Ineos jobs in the petrochemical plant directly affected, the plant is a major contributor to the wider local and national economy.
"The future of the refinery in Grangemouth is also under threat. This is of grave concern and it is essential that all parties get round the table again as soon as possible.""The future of the refinery in Grangemouth is also under threat. This is of grave concern and it is essential that all parties get round the table again as soon as possible."
The statement added that the council was liaising closely with the Scottish and UK governments and was also seeking further talks with Ineos and Unite "as a matter of urgency".The statement added that the council was liaising closely with the Scottish and UK governments and was also seeking further talks with Ineos and Unite "as a matter of urgency".
'Contingency options'
Scottish First Minister Alex Salmond spoke again to management and unions to try and seek further resolution. He also convened an emergency cabinet meeting with relevant ministers to discuss the on-going situation.
Afterwards he said there was still room for negotiation between both parties, particularly since Unite had put forward fresh proposals to the company.
Mr Salmond said: "We should give time for the proper consideration of this offer, especially given that we know an agreement between both sides was very close last week, and the prize is a viable future for Grangemouth.
"However, given that the current position is the one we always feared possible given the stalemate between the sides, if an agreement between Ineos and Unite is not possible then we will continue to pursue our contingency options of finding a buyer for the site."
Ministers - including the Scottish Secretary Alistair Carmichael and Energy Secretary Ed Davey - met in London to discuss this issue.
Mr Carmichael told the BBC's Newsnight Scotland programme that Mr Davey had a 40-minute "positive" talk with Mr Ratcliffe.