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Grangemouth owner Ineos set to announce decision on future of site Grangemouth owner Ineos set to announce decision on future of site
(about 4 hours later)
The owner of the Grangemouth plant is expected to announce on Friday whether it will reverse a shock decision to close the site, safeguarding hundreds of jobs.The owner of the Grangemouth plant is expected to announce on Friday whether it will reverse a shock decision to close the site, safeguarding hundreds of jobs.
Ineos has been discussing a change in position by the Unite union whose members now say they will commit to a plan aimed at securing its future and have reportedly offered a two-year no-strike deal. Ineos has been discussing a change in position by the Unite union, whose members now say they will commit to a plan aimed at securing its future and have reportedly offered a two-year no-strike deal.
The petrochemicals plant and adjoining oil refinery making up Scotland's largest industrial complex was shut down last week in advance of a planned walkout over pay and conditions. The petrochemicals plant and adjoining oil refinery that make up Scotland's largest industrial complex was shut down last week in advance of a planned walkout over pay and conditions.
Ineos did not restart the site after Unite called off the strike but wrote to staff asking them to sign up to changes such as a pay freeze and the closure of the final salary pension. Ineos did not restart the site after Unite called off the strike, but wrote to staff asking them to sign up to changes such as a pay freeze and the closure of the final salary pension.
The company insisted on Wednesday it had no alternative but to close the plant after it failed to persuade staff to accept the survival plan but Unite general secretary Len McCluskey said on Thursday the union would embrace it "warts and all". The company insisted on Wednesday it had no alternative but to close the plant after it failed to persuade staff to accept the survival plan, but Unite's general secretary, Len McCluskey, said on Thursday that the union would embrace it "warts and all".
A statement is expected from Ineos on Friday on the petrochemical business which employs 800 people directly and a further 2,000 sub-contractors. A statement is expected from Ineos on Friday on the petrochemical business, which employs 800 people directly and a further 2,000 subcontractors.
"We are not going to let this plant close," McCluskey said on Thursday night. "We are not going to let this plant close," McCluskey said.
"This plant is on cold shutdown and each day that goes by makes it harder to start back up again, which is why the stewards made the offer to the company – so that we can get people back to work." "This plant is on cold shutdown and each day that goes by makes it harder to start back up again, which is why the stewards made the offer to the company, so that we can get people back to work."
UK government officials have admitted it would be a "challenge" to find another company to buy the business, which Ineos has said is losing £10m a month. UK government officials have admitted it would be a challenge to find another company to buy the business, which Ineos has said is losing £10m a month.
The losses and the scale of investment needed to upgrade the site, coupled with the industrial relations, would all have to be considered by any potential buyer, officials said.The losses and the scale of investment needed to upgrade the site, coupled with the industrial relations, would all have to be considered by any potential buyer, officials said.
But they insisted there would be no shortage of fuel supplies as a result of the dispute. They insisted there would be no shortage of fuel supplies as a result of the dispute.
Ministers from the Scottish and UK government held talks with Unite and management on Thursday and said that both administrations were doing all they could to keep the site open. Ministers from the Scottish and UK governments held talks with Unite and management on Thursday and said that both administrations were doing all they could to keep the site open.
The Scottish secretary, Alistair Carmichael, said: "It's clear that we're dealing with a different situation following the statement from Unite that they were prepared to accept the Ineos survival plan without any pre-conditions.The Scottish secretary, Alistair Carmichael, said: "It's clear that we're dealing with a different situation following the statement from Unite that they were prepared to accept the Ineos survival plan without any pre-conditions.
"There remains of course a great deal to be done.""There remains of course a great deal to be done."
Carmichael said the decision about the future of the plant lies ultimately with company shareholders.Carmichael said the decision about the future of the plant lies ultimately with company shareholders.
Unite and Ineos 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. Unite and Ineos have been embroiled in a bitter dispute for weeks, initially over the treatment of the 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 dramatically widened to the future of the entire site, with Ineos warning that it would close without fresh investment and changes to pay, pensions and other conditions.The dispute dramatically widened to the future of the entire site, with Ineos warning that it would close without fresh investment and changes to pay, pensions and other conditions.
Here are the key events which left the Grangemouth petrochemicals plant – part of Scotland's largest industrial complex – on the brink of closure: Key events in the dispute:
• October 11: Unite says Grangemouth workers are to strike for 48 hours from October 20 in a row with owner Ineos over their treatment of union convenor Stephen Deans. The company previously launched an investigation into Mr Deans, who was involved in the dispute over the selection of a Labour candidate in Falkirk. • 11 October: Unite says Grangemouth workers are to strike for 48 hours from 20 October in a row with Ineos over its treatment of Deans.• 14 October: Union leaders meet Ineos officials for talks chaired by the conciliation service Acas .
• October 14: Union leaders meet Ineos officials for talks chaired by conciliation service Acas aimed at resolving the row. • 15 October: It emerges that Grangemouth staff have begun shutting down the plant in readiness for the planned walkout.
• October 15: It emerges that Grangemouth staff have begun shutting down the plant in readiness for the planned walkout. • 16 October: Unite calls off the strike despite the failure of 16-hour talks to resolve the dispute. Ineos says the "financially distressed" site will remain in shutdown.
• October 16: Unite calls off the strike despite the failure of 16-hour talks to resolve the dispute. Ineos says the "financially distressed" site will remain in shutdown. • 17 October: The company sends workers letters details of proposed changes to pay and conditions as part of a survival plan aimed at securing the plant's future.
• October 17: The company sends workers letters details of proposed changes to pay and conditions as part of a "survival plan" aimed at securing the plant's future. • 18 October: Unite says it will agree not to strike before the end of the year if the plant is restarted.
• October 18: Unite says it will agree not to strike before the end of the year if the plant is restarted. • 20 October: Around 400 workers hold a protest rally at the Grangemouth complex.
• October 20: Around 400 workers hold a protest rally at the Grangemouth complex. • 21 October: As a 6pm deadline to accept changes to pay and conditions passes. Unite says two out of three of its members have said no.
• October 21: As a 6pm deadline to accept changes to pay and conditions passes, Unite says two out of three of its members have said no. • 22 October: The Scottish government says it is in discussion with potential buyers for the troubled site.
• October 22: The Scottish Government says it is in discussion with potential buyers for the troubled site. • 23 October: Ineos chairman Calum MacLean tells workers the petrochemical plant will close following a 50/50 split in support for the survival plan and 800 jobs will go.
• October 23: Ineos chairman Calum MacLean tells workers the petrochemical plant will close following a 50/50 split in support for the survival plan and 800 jobs will go. • 24 October: Unite says it will commit to the survival plan to keep the plant open and save jobs.
• October 24: Unite says it will commit to the survival plan to keep the plant open and save jobs. • 25 October: Ineos shareholders are expected to respond to Unite's change in position.
• October 25: Ineos shareholders are expected to respond to Unite's change in position.
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