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Grangemouth: Employees face deal deadline

Employees at Grangemouth oil refinery in Scotland have until 6pm tonight to agree to a strike deal or face plant closure.

Around 500 workers at the Grangemouth oil refinery in Scotland have rejected new pay and pension conditions put forward by the plant's owners Ineos, according to Unite.

Union group Unite said it had received written assurances from more than 500 employees (out of a total of 1,350 workers) that they would not accept proposed changes to their pensions, overtime and redundancy payments.

Ineos said it is "not bluffing" with its plan to shut Grangemouth "within weeks" if workers don't agree to the new deal by tonight's 6pm deadline.

The company said it has so far received 250 letters from employees backing the changes. In a statement this morning the company described the progress being made as "extremely positive".

Ineos said yesterday it would only reopen the site if enough workers agree to the new conditions.

Dispute escalates

Last Wednesday Gragemouth, which provides 85% of Scotland's petrol, was shut down in an escalation of an industrial dispute between Ineos and Unite.

Ineos has put forward "a survival plan" for Grangemouth and warned that the plant would close in 2017 without fresh investment and changes to workers' terms and conditions.

These changes were detailed in letters sent to staff at the end of last week. They include freezing the basic salary and offering no bonuses until at least the end of 2016.

The shift allowance would also be reduced and pensions transferred from a final salary to a defined benefits scheme. The company has said no job cuts were expected.

It also said employees who support its survival plan at this stage will receive a transitional payment of up to £15,000 and an enhanced employer contribution to their pension.

Clock is ticking

Ineos said the plant would not reopen unless Unite pledged not to strike again this year.

Ineos CEO and founder Jim Ratcliffe told the Sunday Times: "It's really simple, they either want a future for Grangemouth and are prepared to accept change or they wish to continue to inflict damage on the company. This is not a bluff. The clock is ticking."

Unite organised a protest outside the plant yesterday, involving hundreds of workers. It also took out full-page adverts in Scottish newspapers saying Ineos was "holding the country to ransom".

Politicians of major parties have urged both sides to get back around the negotiating table to avert the possible permanent closure of the refinery and petrochemical plant that together employ well over 1,000 people.