Grangemouth: Action threatens paralysis Print E-mail
By Ewan Gibbs   
Wednesday, 23 April 2008

The news headlines in Scotland today were dominated by the strike of 1,200 workers at the Grangemouth oil refinery in the west of Scotland.

This is one of only nine refineries in Britain. The plant processes 210,000 barrels of oil a day. Announcement of the strike has triggered panic buying of petrol. Management have to start closing the plant down nearly a week before the walk-out is due. By Wednesday or Thursday Ineos top brass will reach a ‘point of no return’ where the plant will close even if the strike is called off. So even a 48 hour strike could disrupt petrol supplies for weeks, given the time it would take to make Grangemouth operational again.

ay_0001265.jpgThe dispute surrounds the introduction of making the workers pay into the company pension scheme. 97% voted to strike. Though discussions are still taking place UNITE says management are offering nothing new.

This is a major industrial dispute in that this is a key part of Scottish industry. As well as being responsible for distributing oil to Scotland, England and the North of Ireland it is also plays a role in refining oil from the North Sea, still not an unimportant part of Scotland's economy. Although the initial action is only for 2 days this could cause weeks of disruption. Our British Perspectives document highlighted how a relatively small number of workers are able to inflict huge amount of damage in relatively limited industrial action.

 If more action like this follows, transport could be severely paralysed or at least slowed in the areas that Grangemouth is responsible for supplying, particularly if the current trend of panic buying continues and management continues to grind its feet. The Scottish Government is attempting to patch together a deal and has labelled this dispute "unacceptable". Interestingly it has not just blamed the workers, perhaps because this is such a vital area of the economy they are also pressuring the bosses to make concessions as they cannot afford for this dispute to go on.
 
At a time when oil prices are over $100 a barrel these workers have great economic muscle and it would seem a curious time to implement an attack on their pensions. It doesn’t sound very sensible on the part of management. What are they playing at?

I would also like to add that this coincides with the movement of teachers and civil servants in England and Wales as well as a strike of the public sector in Aberdeen against cuts in local government. There are also likely to be more moves surrounding the 2% public sector pay "rises". After a slumber of arguably over 20 years it would appear that the British working class is remerging onto the industrial battleground.