Owners Ineos announce that the Grangemouth petrochemical plant will remain open, as the trade union Unite accepts a new survival plan that includes a three year no-strike deal.
The key agreements of the Grangemouth deal are: three years without strikes, a “modern pension scheme”, a three-year pay freeze, and changes to union agreements including no full-time union convenors.
Ineos has announced it will reopen the petrochemicals business with immediate effect and will immediately restart the oil refinery.
A company statement referred to a “dramatic U-turn” by Unite, and said the deal reflected the union’s “belated recognition that the company’s survival plan is the only way to ensure Grangemouth’s long term survival”.
Today’s U-turn means Grangemouth now has an excellent future. Ineos statement
Grangemouth Chairman Calum MacLean claimed that Unite “risked 800 jobs and one of the UK’s largest manufacturing facilities over a union official investigation before any verdict had been announced.
“It then advised employees to reject the change essential to the survival of Grangemouth. Today’s U-turn means Grangemouth now has an excellent future.”
Following Unite’s withdrawal of opposition to the company survival plan, shareholders will invest a further £300m in the company, according to Ineos.
A statement said; “This money will be used to fund ongoing losses and to finance the building of a gas terminal to bring in shale gas ethane from the USA.”
This news is a tremendous fillip for the workforce and the whole Grangemouth community. Alex Salmond, Scottish first minister
Downing Street said Prime Minister David Cameron’s priority was to ensure the business survived, adding that they were working “very closely” with the Scottish government on the issue.
Scotland’s First Minister Alex Salmond said: “This news is a tremendous fillip for the workforce and the whole Grangemouth community, following what could have been a potential disaster.
“It’s been a great team effort from all concerned, including the unions and workforce, the management, governments – and BP, who have made a material contribution to help defend and secure Scottish jobs and livelihoods.
Pat Rafferty, Unite Scottish secretary, said he welcomes the news that 800 jobs will not be lost at the site.
“This decision is clearly very welcome. Relief will ring right round the Grangemouth community, and across Scotland today.
“Obviously today’s news is tinged with sadness – decent men and women are being asked to make sacrifices to hold onto their jobs. But the clear wish of our members is that we work with the company to implement its proposals.