Dennis the 'Bloody Peasant'
23rd October 2013, 12:37
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.
The dispute at the plant, near Falkirk, began over the treatment of a 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.
Workers leaving the staff meeting, which lasted about 20 minutes, told the BBC the decision to close the plant was "shocking".
One member of staff claimed that Grangemouth Petrochemicals chairman Calum Maclean had been "smiling" when he made the announcement.
Another worker, who did not want to be named, said: "I feel sick. It's gone. There's no livelihoods left and we don't even know if we're going to get redundancy out of it. I hope they're happy with themselves."
The worker, who appeared close to tears at points, said he could only listen to about 10 minutes of the meeting, before he felt he had to leave.
He went on: "There are folk in there have a husband and wife work here. That's it. Folk will be lucky if they have a house at Christmas."
Ineos said liquidators for the petrochemical plant would be appointed within a week.
Ineos chairman and founder Jim Ratcliffe had said at the weekend that if the petrochemical plant closed it was likely the refinery would go as well.
The refinery provides most of the fuel to Scotland, the north of England and Northern Ireland.
In a statement released after the staff meeting, Ineos said: "The company made it clear that rejection of change would result in closure. Regrettably, the union advised union members to reject any form of change.
"The outcome of the employee vote on the company's survival plan was a 50/50 split.
"Within this, almost all of the administrative staff voted for the company's plan but a large majority of shop floor employees voted to reject it.
"The shareholders met yesterday to consider the future of the business following the result of the employee vote.
"Sadly, the shareholders reached the conclusion that they could not see a future for Grangemouth without change and therefore could no longer continue to fund the business."
The company added: "As a result of this decision, the directors of the petrochemicals business have had no option but to engage the services of a liquidator. It is anticipated that a liquidation process will commence in a week."
Calum MacLean, chairman of Grangemouth Petrochemicals, said: "This is a hugely sad day for everyone at Grangemouth.
"We have tried our hardest to convince employees of the need for change but unsuccessfully. There was only ever going to be one outcome to this story if nothing changed and we continued to lose money.
"We still struggle to comprehend what has happened here. The employees were offered a chance to secure substantial new investment in the company, preserve their jobs and keep their salaries. Sadly this will no longer be the case."
(BBC News)
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.
The dispute at the plant, near Falkirk, began over the treatment of a 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.
Workers leaving the staff meeting, which lasted about 20 minutes, told the BBC the decision to close the plant was "shocking".
One member of staff claimed that Grangemouth Petrochemicals chairman Calum Maclean had been "smiling" when he made the announcement.
Another worker, who did not want to be named, said: "I feel sick. It's gone. There's no livelihoods left and we don't even know if we're going to get redundancy out of it. I hope they're happy with themselves."
The worker, who appeared close to tears at points, said he could only listen to about 10 minutes of the meeting, before he felt he had to leave.
He went on: "There are folk in there have a husband and wife work here. That's it. Folk will be lucky if they have a house at Christmas."
Ineos said liquidators for the petrochemical plant would be appointed within a week.
Ineos chairman and founder Jim Ratcliffe had said at the weekend that if the petrochemical plant closed it was likely the refinery would go as well.
The refinery provides most of the fuel to Scotland, the north of England and Northern Ireland.
In a statement released after the staff meeting, Ineos said: "The company made it clear that rejection of change would result in closure. Regrettably, the union advised union members to reject any form of change.
"The outcome of the employee vote on the company's survival plan was a 50/50 split.
"Within this, almost all of the administrative staff voted for the company's plan but a large majority of shop floor employees voted to reject it.
"The shareholders met yesterday to consider the future of the business following the result of the employee vote.
"Sadly, the shareholders reached the conclusion that they could not see a future for Grangemouth without change and therefore could no longer continue to fund the business."
The company added: "As a result of this decision, the directors of the petrochemicals business have had no option but to engage the services of a liquidator. It is anticipated that a liquidation process will commence in a week."
Calum MacLean, chairman of Grangemouth Petrochemicals, said: "This is a hugely sad day for everyone at Grangemouth.
"We have tried our hardest to convince employees of the need for change but unsuccessfully. There was only ever going to be one outcome to this story if nothing changed and we continued to lose money.
"We still struggle to comprehend what has happened here. The employees were offered a chance to secure substantial new investment in the company, preserve their jobs and keep their salaries. Sadly this will no longer be the case."
(BBC News)