Union climbdown in refinery dispute after warning closure would drive up prices by 10p

  • Ineos revealed plans to shut the petrochemicals division of the plant, with the loss of 800 jobs

By Becky Barrow

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UNITE, the union whose strike threat triggered the crisis at one of Britain’s biggest oil refineries, was forced into a humiliating U-turn yesterday.

After previously urging its members at Grangemouth in Scotland to reject cost-cutting demands by owners Ineos, it said it was prepared to ‘embrace’ the proposals ‘warts and all’.

Ineos revealed plans to shut the petrochemicals division of the plant, with the loss of 800 jobs.

A decision is due this morning on whether Ineos shareholders will accept the Unite climbdown

A decision is due this morning on whether Ineos shareholders will accept the Unite climbdown

Production has been suspended in a dispute with the union and Ineos said cuts, including a pay freeze, were necessary for it to reopen.

It said workers earned an average salary of £55,000 – more than double the regional average.

A decision is due this morning on whether Ineos shareholders will accept the Unite climbdown, which could lead to the petrochemicals plants being reopened.

The refinery supplies up to 85 per cent of Scotland’s fuel and the AA warned this week that its closure could add up to 10p per litre on to the price of petrol in the long-term.

 

The comments below have not been moderated.

Don't you just love the 10p ltr price rise threat. Spread the panic in advance so as to justify the increase. .It's capitalism at its worst.

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Yes unions have done a lot. Destroyed the mining industry, the motor car industry, the steel industry, in fact industry in general in the UK. Yes, as you say, they have done a lot!!

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Common sense prevails at last. Unite the union are a disgrace. They do not embrace change. They are stuck in a time warp of belligerent 1970s behaviour that destroyed British industry. I doubt that they will never learn liking to flex their militant muscles.

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Maybe a wrong call by unite but didn't the workers get a VOTE?

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Whilst the CEO sails into the sunset on his yacht moored in the Meditaranian!

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Again we see british workers battered due to week employment protection in the UK, on mainland europe this could not happen. Don't attack the union, attack the company that recorded huge profits and now pleads poverty. Unite are doing what the members want, fighting for their members jobs and Ts and Cs, without Unite the employer would be even more agressive to the employees.

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You sound like one of those union drongoes I had the displeasure to meet whilst working for a large multinational company. Unite leaders are nothing but a bunch of idiots trying to line their own pockets and unfortunately a lot of their members are too blind to see it.. The company is losing 10 million a month, so had to do something. I think this is a great result. I have worked since 1966 and although I have been asked many times to join a union, I have flatly refused. Employment laws in this country protect the workforce enough, despite what you say.

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Attack the un ion when all it has done is tried to defend it's members - which is why they exist. Instead look at a greedy employer who recorded large profits but now claims poverty. Again we see week UK legislation putting a UK worker at risk where on mainland europe it wouldnt happen. Keep it up Unite, stand up for the worker - no one else will.

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unite nearly put an industry out of business through its politics rather than negotiate a fair deal for all including the company they now have overplayed their hand the company are prepared to close them down and the membership do not want to lose their well paid jobs and very nice pensions in the coming years the terms and conditions will get reduced because of unite

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Refining, expensive plant, marginal returns, UK capacity dwindling. When we have to import all our fuel the price will increase by a huge amount !

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The company cannot continue to make a loss, Union intransigence has cost 2000 contractors being laid off and 800 jobs being axed unless the owners decide to reopen the plant. All because unions didn't want change and refused to help the owners stem their losses. Unite is run by idiots who do not live in the real commercial world.

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Spot on Dr Evil, well said !

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