Grangemouth oil refinery faces closure over worker cuts

Scotland's largest oil refinery faces full closure after the facility's owner, Ineos, has said it is not bluffing about plans to shut down. According to the company's chairman, if workers at Grangemouth oil refinery do not agree to the terms and conditions cuts that have been proposed then the facility will close. A total of 1,300 staff could lose their jobs if the site does not remain open.

Grangemouth is the largest oil refinery in the country, providing around 85 per cent of Scotland's petrol. The site closed on October 16th as the dispute between Ineos and the UK's biggest trade union, Unite, came to a head. According to Unite, Ineos is "holding the country to ransom" with its proposed cuts, which include cancelling the final salary pension scheme, pay freezes, overtime cuts and threats of closure, with the trade union printing full page adverts stating this fact in Scottish newspapers.

Workers have until 6pm today (Monday October 21st) to agree to the changes proposed by the company or the oil refinery will stay closed. The deadline ensures that the workers' response will be heard before a shareholders' meeting that will take place tomorrow. According to Ineos, the dispute over the proposed cuts has so far cost the company £20 million, as well as £10 million of monthly losses. 

Jim Ratcliffe, chairman of Ineos and the largest shareholder, said to The Sunday Times: "This is not a bluff. The clock is ticking, Grangemouth could have a future but that is absolutely in the hands of the workers. 

"The situation is very serious but I want to emphasise that there is light at the end of the tunnel. Grangemouth can have a potentially exciting future."

The facility could close for good in 2017 if cuts and new investments are not made, which may be negative for Scotland's oil and gas industry as a whole. As well as providing the majority of the country's petrol, the site also provides power to the Kinneil oil terminal, which processes the crude that comes through the Forties Pipeline System from North Sea drilling operations. The shut down of the site could mean closure of a number of other facilities throughout the sector.