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Shutdown 'risks petrol shortages' | Shutdown 'risks petrol shortages' |
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Bosses at Scotland's only crude oil refinery have started a shutdown after claiming an impending strike will compromise safety. | |
Ineos said the Grangemouth refinery could shut for "at least a month", and warned of major fuel shortages. | |
About 1,200 members of the Unite union are to strike on 27 and 28 April in a dispute over pensions. | About 1,200 members of the Unite union are to strike on 27 and 28 April in a dispute over pensions. |
Scottish ministers urged both sides to try to resolve the dispute, instead of "trading commentary" in the media. | |
The Unite union said Ineos' proposed pension changes were "unreasonable". | |
Ineos said in a statement that it had taken the decision to start shutting down the Grangemouth facility on safety grounds. | Ineos said in a statement that it had taken the decision to start shutting down the Grangemouth facility on safety grounds. |
It is important that the plant is not only shut down safely but also remains safe through the strike period Ineos statement | It is important that the plant is not only shut down safely but also remains safe through the strike period Ineos statement |
The statement added: "Fuel shortages are likely to begin in Scotland as early as Friday 25 April and the whole of Scotland could be without fuel for at least a month. | |
"It is important that the plant is not only shut down safely but also remains safe through the strike period and this process can take many days." | "It is important that the plant is not only shut down safely but also remains safe through the strike period and this process can take many days." |
The first stage of the closure began on Friday night, with the first plant on the site due to shut completely on Monday. | The first stage of the closure began on Friday night, with the first plant on the site due to shut completely on Monday. |
The remaining plants would be taken offline in a phased shutdown which would be completed by Friday. | The remaining plants would be taken offline in a phased shutdown which would be completed by Friday. |
The statement said that the action would also effectively shut down much of the North Sea's oil and gas production, a large proportion of which goes through Grangemouth, causing supplies to dry up and leading to shortages across Scotland and the north of England. | The statement said that the action would also effectively shut down much of the North Sea's oil and gas production, a large proportion of which goes through Grangemouth, causing supplies to dry up and leading to shortages across Scotland and the north of England. |
Grangemouth supplies Scotland, Cumbria, Northumberland and parts of Yorkshire. | |
The Scottish Motor Trade Association, which acts for petrol retailers, urged drivers not to fill up tanks as shortages were often sparked by panic buying. | The Scottish Motor Trade Association, which acts for petrol retailers, urged drivers not to fill up tanks as shortages were often sparked by panic buying. |
The changes to the scheme Ineos are proposing are unreasonable Phil McNultyUnite | |
However, Tom Crotty, CEO of Ineos Olefins, said: "The union is well aware that a 48-hour strike will cause fuel chaos in Scotland and the north of England for weeks on end. | However, Tom Crotty, CEO of Ineos Olefins, said: "The union is well aware that a 48-hour strike will cause fuel chaos in Scotland and the north of England for weeks on end. |
"This is a huge oil refinery and they know you can't just turn it on and off like a tap. A month is our best guess but safety considerations will be at the forefront of everything we do. | "This is a huge oil refinery and they know you can't just turn it on and off like a tap. A month is our best guess but safety considerations will be at the forefront of everything we do. |
"They have deliberately chosen a course of action that is the minimum pain for them, but which will inflict the maximum pain on Scotland and the whole UK." | "They have deliberately chosen a course of action that is the minimum pain for them, but which will inflict the maximum pain on Scotland and the whole UK." |
Mr Crotty described the union's claim that the refinery made £3m a day as "nonsense" and said Ineos needed to invest £750m into the site. | |
He claimed that the strike threatened that investment, as well as hundreds of jobs, and would damage the UK economy. | He claimed that the strike threatened that investment, as well as hundreds of jobs, and would damage the UK economy. |
Talks urged | |
Phil McNulty, national officer of Unite, insisted that the company was profitable and the pension scheme was well-funded and affordable. | Phil McNulty, national officer of Unite, insisted that the company was profitable and the pension scheme was well-funded and affordable. |
The union has previously said that Ineos is planning to close the final salary pension scheme after taking £40m from it and slashing its own contributions. | The union has previously said that Ineos is planning to close the final salary pension scheme after taking £40m from it and slashing its own contributions. |
Mr McNulty added: "The changes to the scheme Ineos are proposing are unreasonable, unnecessary and have forced our members at Grangemouth to take industrial action for the first time." | Mr McNulty added: "The changes to the scheme Ineos are proposing are unreasonable, unnecessary and have forced our members at Grangemouth to take industrial action for the first time." |
Scottish ministers said contingency measures were already in place and they were being kept informed by the UK Government, which has responsibility for continuity of oil, gas and fuel supplies. | |
A spokeswoman added: "The Scottish Government is closely monitoring the situation and is fully aware of the potential disruption that could arise. | |
"The Scottish Government is calling on both sides to get together to negotiate and resolve their differences to avert this action, rather than trading commentary in the media." | |
Ineos acquired the Grangemouth site from BP in 2005 and is now the biggest privately-owned chemical business in the UK. |