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Strike to Shut UK Refinery and Affect Forties

Tags: Benefits, Human Resources, Oukbs, Pension, Refinery

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2008-04-18 12:00:36.0

LONDON (Reuters UK) - Workers will launch a two-day strike on April 27 at Ineos' Grangemouth refinery in Scotland, forcing it to shut down with a significant impact on the North Sea Forties pipeline system that terminates there, both the union and company said on Friday.

The strike at the 200,000 barrels per day former BP (BP) refinery over changes to refinery workers' pension scheme, would be Britain's first oil refinery strike in 73 years, Unite the Union said.

The union says Ineos made unnecessary reductions to the value of its members' pensions without their agreement, while Ineos says the pension scheme remained a generous final salary scheme and would be fully funded.

"The bottom line is that because Unite the Union has basically told us that we have to close down the site and remove all hydrocarbons from the facility, we effectively have to begin turning off the refinery which is at the end of the Forties pipeline," Ineos Communications Manager Richard Longdon said.

"It will have a significant impact on the Forties pipeline," Longdon added. He declined to give further details.

Unite spokesman Richard O'Brien said the shutdown at the refinery could last as long as a month and affect North Sea crude production for a week.

Strike news boosted oil markets on Friday as port workers at France's Fos-Lavera refining hub blocked 23 ships and extended their strike until Saturday.

(Reporting by Melissa Akin; Editing by Marguerita Choy)

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