Refinery strike 'could spark major fuel crisis'

Published on Friday 18 April 2008 02:18

SCOTLAND could be just days away from a fuel crisis after workers at the country's only refinery announced a two-day strike in a pension row.

Supplies to airports and filling stations across Scotland and northern England could be disrupted by the two-day action at Grangemouth, which begins next weekend.

Last night, transport chiefs warned of "serious ramifications" and possible queues at the pumps. The dispute will see the union Unite withdraw safety cover, forcing the massive complex to shut down. A contingency plan involving the closure of plants within the refinery is expected to start this weekend.

Last night, Ineos, which owns the refinery, said it was "deeply concerned" about the union's "cavalier" approach to safety.

Tom Crotty, Grangemouth CEO, said: "I have written to Tony Woodley, Unite's joint general secretary, expressing our concerns. Ineos has always prioritised site safety, and I'm deeply concerned the union is putting other issues ahead of safety."

Raising the stakes in the dispute, Ineos also warned strike action would threaten the future of the whole refinery and hundreds of jobs.

Currently more than a quarter of the entire salary bill at Grangemouth goes into the pension scheme, and independent pension experts say this figure could rise to almost 50 per cent.

Ineos has said it considers this figure is excessive and unsustainable. Unite said 1,200 workers will strike, following a 97 per cent vote in favour of industrial action, in protest at plans to close the final-salary pension scheme to new workers.

Geoff Dossetter, of the Freight Transport Association, said the action could have "very serious ramifications on businesses, garages and their customers."