Len McCluskey gets 800 men the Sack

[Conniff]

Len McCluskey and the Unite Union tried to bully and blackmail a Scottish company into increases in pay and bigger pensions despite the company losing £10million per month.

 

This stupid person and his Union who will lose nothing and is assured of his pay and pension had their blackmail threat of strikes backfire on them when the company said it was closing with the loss of all those employed.

 

So 800 men now face a bleak future because of one mans intransigence.

 

They are at the moment trying to backtrack on their demands and say that isn't what they meant.

 

More ...

 

This plant is the mainstay of Scottish Economics, so a country wants to go independent with one factory to support them - I can't see anyone falling for this stupid independence rubbish.

[antone]

I believe Grangemouth (about 5 miles away from me) contributes £16 billion pa to the Scottish GDP. Annual Scottish GDP is about £235 billion. So no, Scotland is not "supported by one factory". And I say this as a wishy-washy opponent of independence.

 

As far as I can see, neither Ineos nor Unite have covered themselves with glory here.

[Conniff]

It's not just the financial contribution though. If Grangemouth should remain closed, Scotlands main supply of fuel dries up plus all the thousands of small businesses that trade with them, including the burger van that comes at lunchtime, will probably all be forced to closed or scramble desperately to find other clients who more than likely aren't there.

 

I agree neither has covered themselves with glory, but you don't try to blackmail your bread and butter especially when it is on it's last leg. Those out of a job relied on the Union and the Union got it wrong just as they usually do.

[Mike_hawk]

I'm struggling with the business position, pay freeze and adjustments to pension scheme.... even an inflated guesstimate of a 10k saving per head per annum would only release £13.7mil operating capital yet it states a £170mil annual loss across the operation.

 

Perhaps its long term investment interests lay elsewhere?

[Conniff]

Part of the plans put to the Union were the import of US Shale oil at half the price they are paying for oil at the moment.

[dx100uk]

it was the plan from day one to eventually close the plant once you know who was basically given it

and £Ms of gov't handouts too to do so.

 

don't be fooled.

 

same game as icetech and the rest of 'em.

[unclebulgaria67]

Apparently it is the cost of running the Grangemouth site and there has been a threat before to move the operation to the US, where due to better fuel prices, it would be far cheaper to run.

 

The workers were threatened with reduced pay and pensions or face losing their jobs. The Union were just sticking up for the workers, which is surely their role. They are now working with all interested parties to see if the site can stay open, with jobs saved.

 

The company who own the site moved their head office to Switzerland in 2010, to save themselves £100 million in tax. The owner has made a huge amount in the UK, but is now acting like a bully.

 

If there is a problem running the site because of fuel costs in the UK, this is where we need active involvement of government in the UK to support business.

[Mike_hawk]

I believe its currently quoted at 10 dollars a barrel lower.

[Conniff]

They are now working with all interested parties to see if the site can stay open, with jobs saved.

 

I would more say they were back pedalling because their bluff has been called.

[renegadeimp]

Its one of the reasons i stopped being a senior shop steward a few years ago. They were good when they were the TGWU, now that union thinks businesses should do what the union says under threat of strike action.

 

Trust me when i say, never believe for one minute what the Unite union management say.

Edited October 24, 2013 by renegadeimp

[Mike_hawk]

I would more say they were back pedalling because their bluff has been called.

 

Probably political meddling, if the parties agree the terms the plant 'should' be back in operation.... assuming no other motives were involved in the decision to close.

[unclebulgaria67]

Probably political meddling, if the parties agree the terms the plant 'should' be back in operation.... assuming no other motives were involved in the decision to close.

 

Yes the company are probably looking for government subsidy for the site. As has been said, the staff taking a pay and pension cut, will not make the site profitable.

[antone]

It's not just the financial contribution though. If Grangemouth should remain closed, Scotlands main supply of fuel dries up plus all the thousands of small businesses that trade with them, including the burger van that comes at lunchtime, will probably all be forced to closed or scramble desperately to find other clients who more than likely aren't there.

 

I agree neither has covered themselves with glory, but you don't try to blackmail your bread and butter especially when it is on it's last leg. Those out of a job relied on the Union and the Union got it wrong just as they usually do.

 

This sort of thing has happened before. The closure of Ravenscraig, near Motherwell (also less than 10 miles away from me when it happened) had a dreadful medium term effect on Lanarkshire. It's not fun, but these things do happen and Scotland is no less prepared to deal with them than anywhere else. Hell, Glasgow is the classic example - a prosperous city that lost its main industry and figured out another way to survive. But there's no point in pretending, closure will have a significant effect on this part of the world.

 

As to fuel, as long as people in Scotland want fuel, someone will sell it to them. The closure of Grangemouth won't suddenly mean we can't drive anywhere. You can't help feeling that Ineos was cynically looking for a reason to close the plant (or blackmail the government into providing some corporate welfare) and the union played straight into their hands.

[Conniff]

You can't help feeling that Ineos was cynically looking for a reason to close the plant (or blackmail the government into providing some corporate welfare) and the union played straight into their hands.

 

 

That may well be so, I don't know if this method of getting rid of staff means they have no responsibility for redundancy pay.

[antone]

That may well be so, I don't know if this method of getting rid of staff means they have no responsibility for redundancy pay.

 

Not sure about that myself, but it is an interesting question.

[ericsbrother]

No, they still have to pay the redundancy but that is a spit in the ocean. Every refinery in the UK loses money, god knows how but this is not a unique position for Grangemouth. The oil they refine belongs to others and they contract to refine it, a bit like a windmill in the past grinding corn under contract, the miller did as he was paid to and the lord of the manor paid him less and expected the best flour in return whilst the peasants got lead added to their flour to make it heavier and whiter.

I dont think this is the end of the story but you can gurantee that the pension scheme winding up will make money for Ratcliffe and he will profit from the tax break. Look at how Starbucks, Amazon, ebay and the others claim that the UK business is a subsidiary of an operation in Luxembourg that miraculously fits into a broom cupboard and the UK operations are not profitable because they buy all of their stuff from the Luxy company at an inflated price. Competition Commission should have a say but they dont.

[hallowitch]

Sad times ahead for Grangemouth I was Born and brought up in Grangemouth hard to believe its going to close

[steampowered]

I don't think this is only Unite's fault. The employees decided to vote against a reduction in pay knowing what the consequences could be.

 

The article suggests that liquidators are being appointed which means the plant is insolvent ... and that most likely any redundancy money would be the bare minimum and would be funded from the public purse.

[Conniff]

I don't think this is only Unite's fault.

 

The workers are guided by the Union, they do what the Union recommends.

 

On another side, Unite has found a tax loophole and has paid 'NO' tax for the past 2 years despite having £52million in the bank.

 

Len 'Red' McCluskey is just a reincarnation of 'Red' Millibands dad.

[steampowered]

The workers are guided by the Union, they do what the Union recommends.

 

On another side, Unite has found a tax loophole and has paid 'NO' tax for the past 2 years despite having £52million in the bank.

 

This was achieved because unions are allowed to offset the benefits they offer their members against tax. The same applies to benefits offered by any employer, I don't know any employer that would choose to pay tax on things like illness insurance. I'm not sure I would describe it as a loophole.

[unclebulgaria67]

This was achieved because unions are allowed to offset the benefits they offer their members against tax. The same applies to benefits offered by any employer, I don't know any employer that would choose to pay tax on things like illness insurance. I'm not sure I would describe it as a loophole.

 

But Conniff obviously hates unions for whatever reason and believes that employers can do what they like. Unions came into existence because of the way employees were being treated, particularly related to health & safety. If the Unions were not there fighting for their members, you would see employers going back to the bad old days, where they invited workers to turn up at the factory gate at 7am and the foreman would pick who they needed to work that day, with the rest sent home so they could not earn.

[Surfer01]

Apparently it was just over 50% of workers that wanted to strike. The rest of the country has to make do on their current wages probably with no increase for the past few years, but workers at Grangemouth wanted more?

[steampowered]

Apparently it was just over 50% of workers that wanted to strike. The rest of the country has to make do on their current wages probably with no increase for the past few years, but workers at Grangemouth wanted more?

 

No, they weren't asking for more. They didn't accept a cut.

[Conniff]

Well they got a cut now, bigger than the original and all because the Union advised them to not accept it.

[hallowitch]

The Grangemouth petrochemical plant near Falkirk is to stay open after a new deal was struck with workers.

 

 

http://www.bbc.co.uk/news/uk-scotland-24671184