Refinery strike: battle for hearts and minds

IN THE half-light of 6am, the silent, flag-bearing workers emerged from a place where dawn mist met industrial steam, their faces set like the steel of the refinery behind them.

This was not a day of celebration for union members caught up in the pensions strike at Grangemouth oil refinery. They were workers weighed down by the knowledge that this has become a battle for hearts and minds – and who realise if the effects of their action tip over into fuel shortages or rising petrol costs, any public support they have will quickly ebb away.

The dispute, being played out on a very public stage, stepped up a gear as Unite launched an advertising campaign in national newspapers revealing "The Truth About Ineos", the chemical firm which owns the site. The cost of the adverts will run into tens of thousands of pounds, while Ineos is combating the union view by adding to its in-house media team with the expertise of a London PR agency. Media Zoo includes HSBC, the Arcadia Group and Argos among its clients. It is also a production company, with other firms such as Marks & Spencer and Prudential using them for commercials.

It looks increasingly like a question of who will blink first. On the ground, grim voices employed fighting talk, describing the firm as "liars" and its chairman, multi-billionaire Jim Ratcliffe, as a coward. If anyone was expecting compromise, they were disappointed.

Last night PR experts said the stand-off was increasingly developing into a battle to win over public opinion. Nora Senior, managing director of Weber Shandwick Scotland, said: "Public opinion will be affected once this starts to hit practicalities, such as shortage of petrol. We can't have small businesses suffering and people not getting to work. If this has a major impact on the economy, the unions will lose support.

"The employers are in a different position. Their position is to ensure they are seen to be trying to establish an open dialogue."

With no end in sight, overseas fuel was shipped in to combat panic-buying and a summit involving Alex Salmond and Gordon Brown, the Prime Minister, may take place as early as today.

The closure of the plant means the vital Forties pipeline, which supplies a third of the North Sea oil, sputtered to a standstill at a cost of £50 million a day.

As sunrise reflected off the plant's huge chimneys, Mark Lyons, the co-convener of the Unite union, paused to say: "It's just extremely, disappointing. This refinery has operated for almost 80 years without any industrial action at all. Within two years (since Ineos bought it from BP] the country is in deadlock and we had to take this course of action we are reluctant to take."

Mr Lyons said the union had insisted on maintaining safety at the plant during the shutdown and workers were providing unpaid cover.

On the edge of the refinery, which takes in about 750,000 barrels of oil a day, BP's Kinneil plant, where the majority of the oil is stabilised for shipment, was quiet. It runs off Grangemouth's utilities and Ineos has blamed unions for not providing enough power to keep it going. But Mr Lyons said: "The company asked us for an amount of steam for safety. As part of Acas talks, this is the only agreement we reached. This is not enough for Kinneil."

He led his members, armed with flags and placards blaring out condemnations, to the union offices.

There, Michael Grant, a 29-year-old safety representative, said: " It's a serious matter, it's about our pensions. No-one wanted this, but the fact is (Ratcliffe] has and flexed his muscles. It's bully boy tactics."

Cars hooted what workers took to be support for the action – but it is clear that public support is on a knife-edge. Kirsty McGrellis, 29, another safety representative, admitted there was a "mixed bag" of opinion nationally, but said: "I think there's lot of support locally. A wee thumbs-up keeps you going. It's not the union bringing the country to a standstill."

She said under the pension proposal, she would have to work an extra five years and lose £1,600, but added: "It's not about our pensions. It's the future generations of pensions. We are fighting for the future."

Ineos has said it has to end the "Rolls-Royce" non-contributory final-salary pension scheme to ensure the future global competitiveness of Grangemouth. It also wants to close the scheme to new members and replace it with a defined contribution plan.

Petrol prices remained fairly static, according to The Scotsman snapshot survey of stations. A number reported stocks drying up, while others did not know when the next delivery would be. One station in Winchburgh, West Lothian, said it had run out of both diesel and unleaded on Saturday and was not expecting to get supplies until the end of the week. Petrol prices ranged from just over £1, to a high of £1.10, with many garages saying their charge had not changed despite demand.

At an 11am rally in front of the union offices, Michael Connarty, MP for Linlithgow and East Falkirk, said Ineos was "telling lies".

He issued a direct plea to Mr Ratcliffe to meet him, pointing out that he had been very keen for discussion when he wanted to buy the plant. "Where are you hiding, Jim?" he demanded.

Pat Rafferty, Unite regional officer, told a crowd of family members: "It's a bitter battle, but with your help and support we've had all the way along, we will win this.

Earlier, he told The Scotsman: "This is not a joyful occasion for our members."

Richard Longden, of Ineos, agreed it was "a very sad day for Grangemouth", but insisted: "We have done everything in negotiations and meetings to bend over backwards to provide concessions to the unions to prevent strike action."

He said the firm was "trying to ensure the long-term future of Grangemouth as a site" and had ploughed in more than £100 million since buying it.

SO WHAT HAPPENS NOW? THE OPTIONS

Back to Acas talks

Both Ineos and Unite have said their respective doors are open, but they have not resumed discussions since the Acas talks broke down in the middle of last week. If they were to enter talks, industrial action should be suspended for their duration, meaning the plant could get up and running. The Scottish Government has offered both sides the services of the president of the Faculty of Actuaries, Stewart Ritchie, to come up with a fair pensions package.

Union capitulates

If Unite were to accept the terms offered by the company, it would mean an eventual end to the final-salary pension scheme. Such a non-contributory scheme is rare now and the union says its loss would give other firms the green light to lose theirs. Tens of thousands of Scots still enjoy the benefits of final-salary pensions. Under the original proposals from Ineos, existing employees would also have to start contributing to their pensions.

Company capitulates

If Ineos gives in to the union's demands, the plant gets up and running again, the oilfields reopen and fuel supplies to Scotland and the north of England return to normal. However, Ineos says that if it continues to pay out as it has been - with claims that pensions account for 25 per cent of its spending on employees - the firm will not be able to invest in Grangemouth to improve its profitability. It claims this will lead to job losses in the future.

More strikes

Because the union has gone on strike within 28 days of balloting its members, it is now free to take more action as and when it wishes. It has to serve seven days' notice on the company first. However, Unite officials yesterday insisted they had no plans for further, or escalated, action - although they did not rule it out in the future. Depending on when it happened, a further walkout would hamper the process of getting Grangemouth back up and running.