Grangemouth: Pension boost for staff who signed up to deal

WORKERS at Grangemouth who did not initially sign up to a controversial survival plan for the plant will receive a smaller pension than those who voted to accept it, it emerged yesterday.

Grangemouth owner Ineos has warned that job cuts will still take place. Picture: Ian Rutherford

Grangemouth owner Ineos has warned that job cuts will still take place.

Staff reacted with jubilation when it was announced last Friday that the firm was to reverse its earlier shock decision to close the loss-making petrochemical plant after about half the staff rejected the rescue plan, which involved cuts to pay and conditions.

The final salary pension is being axed and under the new scheme, Ineos will contribute 11 per cent and employees 6 per cent.

But for new employees, Ineos will only contribute 9 per cent while employees still pay in 6 per cent.

The 665 workers who did not sign the survival plan agreement will be sacked and rehired as new employees, getting only the reduced pension. Those who did sign the contract will get a “sweetener” of between £2,500 and £15,000.

Michael Connarty, Labour MP for Linlithgow and East Falkirk, said: “I think that will be a disaster for working relations in the plant.”

An Ineos spokesman said: “The employees made a choice. The offer was really clear – if they wanted the enhanced scheme all they had to do was say yes. Some chose not to.”

And further job losses have not been ruled out.

Gordon Grant, the site manager for Ineos at Grangemouth, said: “We cannot rule out redundancies.

“But we have just announced £300 million of investment in new plant facilities on the site, so we are confident we will be able to retrain and relocate as many people as we can.”