Union 'embraces' Ineos survival plan

Written By Unknown on Kamis, 24 Oktober 2013 | 19.21

24 October 2013 Last updated at 07:50 ET
Len McCluskey

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Len McCluskey, general secretary of Unite, says he is "optimistic" of a positive response from Ineos

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 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 Ineos announced the closure on Wednesday.

Workers had rejected proposals by the firm to end their final salary pension scheme and cut shift allowances.

However, Unite said it had made a number of recommendations to Ineos at the meeting on Thursday morning.

General secretary Len McCluskey said: "This plant is on cold shut down 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."

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Analysis

There are few subjects on which David Cameron and Alex Salmond's governments have agreed since both men signed a deal paving the way for a referendum on Scottish independence.

The fate of Scotland's largest manufacturing site has, however, forced political foes to unite.

Departments in Whitehall and Edinburgh are frantically engaged in a last-ditch effort to save the jobs of 800 workers and a site which they agree is, simply, too big to fail.

While voters are weighing up the pros and cons of the nation's future, the implications of closure of Grangemouth are unthinkable, economically and politically, for both governments.

UK ministers don't want to see hundreds of manufacturing jobs axed just as the sector is showing signs of recovery and as unemployment falls. Add to that the threat to the neighbouring oil refinery and the implications its closure would have on the energy sector.

Aside from the massive blow to Scotland's industrial heartland, a significant part of the Scottish government's financial case for independence is based on oil and Grangemouth is Scotland's only crude oil refinery. To lose it would be a catastrophe.

So, for the moment both governments have set aside their differences. Normal service, over the future of the United Kingdom, will be resumed in public soon.

He said the union would not let the plant close, and said it had been "encouraged" by similar comments from First Minister Alex Salmond.

Mr McCluskey added: "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."

Ineos is expected to wait until further meetings involving politicians are held later on Thursday before responding to the latest development.

Scottish Finance Secretary John Swinney and Scottish Secretary Alistair Carmichael are both due to hold talks at Grangemouth.

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."

Downing Street said Prime Minister David Cameron was "keen" that discussions continue between Unite and the company

A spokesman added: "Clearly, we want both sides to continue with those talks and come to a solution if possible."

Labour leader Ed Miliband said the "very significant movement" by unions over terms and conditions at the plant was "encouraging".

Before the talks with Unite, Ineos director Tom Crotty said the management team at Grangemouth would listen to what the union would be saying.

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."

Previously, Ineos said it was ready to invest £300m in Grangemouth if workers agreed to the new terms and conditions.

Continue reading the main story

Background: Grangemouth dispute

  • The dispute first flared up in the summer over the company's treatment of Unite official Stephen Deans, who has worked at Grangemouth for more than 20 years
  • He was accused of trying to rig the selection of a Labour candidate for the Falkirk seat at Westminster but was later cleared
  • But Ineos has been carrying out its own investigation into claims Mr Deans improperly used the refinery for union business. Its findings are due to be published on Friday
  • Unite members at Grangemouth had been due to strike last Sunday over Mr Dean's treatment
  • Ineos had closed the plant ahead of the industrial action and said it would not be restarting the facility even after the strike was called off
  • It said Grangemouth was losing huge amounts of money and faced going bust unless staff agreed to a survival plan
  • The proposals included changes to pay and conditions. They were rejected by about half of the site's workers
  • The decision that the petrochemical plant should close was taken at a meeting of Ineos shareholders, including chairman and founder Jim Ratcliffe, on Tuesday

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?"

David Watt, from the Institute of Directors, said it was "quite sad" that the dispute at Grangemouth had reached this point.

He commented: "It's rather gloomy in the way this has developed. I would have hoped both parties could have negotiated over a longer period.

"I think there are opportunities but it's quite sad that we've got to this point.

"There are probably faults by both sides."

And he said he was surprised that the union thought the closure announcement was a shock.

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.

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.

The refinery provides most of the fuel to Scotland, the north of England and Northern Ireland.

Baillie Joan Paterson

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Local councillor Baillie Joan Paterson describes how the closure of the Grangemouth plant would see the town go from "boom town to doom town"

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".

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.

"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.

"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".


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