Grangemouth dispute: Ineos says petrochemical plant will close.
The petrochemical plant at the giant Grangemouth complex in central Scotland is to close.
Ineos made the announcement following a meeting with the workforce at the plant and its associated oil refinery.
The company said a decision on whether to restart the refinery would be taken once the "threat of strike action" had been removed.
About 800 people are directly employed by the petrochemical plant, with more employed as sub-contractors.
http://www.bbc.co.uk/news/uk-scotland-24631342
Previously :
Grangemouth dispute: Buyer sought for plant, says Scottish government.
The Scottish government is trying to find a buyer for the Grangemouth refinery and petrochemicals plant.
Scotland's Finance Secretary John Swinney said ministers had been having discussions "with other players".
An ongoing dispute between owners Ineos and the union Unite has resulted in the plant being temporarily closed.
Ineos has said it will make an announcement to workers on Wednesday on the future of the complex.
http://www.bbc.co.uk/news/uk-scotland-24618760
General background to dispute 2008 :
Strike over pensions hits oil and gas production.
In April 2008, workers at the Grangemouth oil refinery in Scotland held a 48-hour strike over the issue of pensions. About 1,200 employees took part in the strike, which also forced the closure of the Forties pipeline which supplies oil and gas to British and international markets. The Grangemouth workers are seeking to protect their existing pension scheme, arguing that the company can afford to sustain both new and existing members.
Workers at the Grangemouth oil refinery on the east coast of Scotland staged a 48-hour strike in April 2008 over plans by the chemicals company INEOS to change its pension scheme arrangements. The strike began in the early hours of Sunday 27 April and involved about 1,200 employees who are members of the trade union Unite. INEOS said it could take up to three weeks for Grangemouth to reach full plant capacity, although this claim was disputed by the trade union.
The temporary closure of the plant, which refines around 10% of the UK’s petrol, also forced the closure of the Forties pipeline, since the nearby Kinneil production plant, which is owned and operated by BP, cannot function without power and steam from Grangemouth. The Forties pipeline carries over 725,000 barrels of crude oil and 80 million cubic metres of gas ashore daily, supplying Britain and international markets. The offshore energy industry body Oil and Gas UK has estimated that the dispute could cost the economy more than GBP 50 million (about €63.57 million as at 19 June 2008).
Background to dispute
INEOS, which acquired Grangemouth from BP in 2005, insisted that it has been ‘bending over backwards’ to avert the dispute. The company proposed suspending all changes to the existing pension scheme, including the introduction of employee contributions; it agreed to engage in a three-month period of discussion if the trade union conceded to avert any strike action. However, this offer was rejected by Unite on the basis that the company still planned to close the defined contribution (DC) pension scheme to new members from 1 August 2008. Although the company says that this would not affect existing employees, the trade union contends that introducing a money purchase scheme for new staff will make it more difficult to protect the existing scheme due to the diminishing number of new members. Unite argues that the pension fund is in surplus, financed at 120% of the required value, and can afford to sustain current and new members.
http://www.eurofound.europa.eu/eiro/2008/06/articles/uk0806029i.htm
= new reply since forum marked as read
given that one of the main areas of disagreement was new staff getting the benefit of the current non contributory pension scheme. :
Which new staff ? 