INEOS, the owner of Grangemouth, Scotland’s only crude oil refinery, has warned that the Unite trade union’s proposed strike at the facility will result in the closure of the plant for many weeks. The strike has been called for the 27th and 28th April and INEOS has warned that fuel shortages are likely to begin in Scotland as early as Friday, April 25th, and the whole of Scotland and parts of northern England could be without fuel for at least a month.

Tom Crotty, CEO 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. It is not our wish to suspend production at Grangemouth but the Unite trade union has given us no choice in the matter. They’ve 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”.

The dispute centres around changes that INEOS proposes to make to the company’s pension scheme.

The Unite trade union responded to INEOS’s warning, with Phil McNulty, Unite National Officer for Ineos stating: "Ineos has jumped the gun and is panicking the public unnecessarily. A strike is an absolute last resort. There is still time to negotiate and avert a strike and we are calling on the company to get back around the table now."

From a business continuity point of view, organisations in the affected areas should monitor the situation as it develops and make appropriate contingency plans to potentially reduce fuel usage and the need for travel; and to ensure that refuelling of vehicles is carried out ahead of time. Organisations should also bear in mind the necessity to try and avoid unnecessary panic-buying of fuel and the need to adhere to fuel storage regulations.

http://www.ineos.com/
http://www.amicustheunion.org/

•Date: 22nd April 2008• Region: UK •Type: Article •Topic: Warnings
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