Scotland’s historic Grangemouth refinery has completed its final stretch of crude processing and will close its doors. The decision is a troubling sign for the energy sector in Scotland and has several unions up in arms, as no plans are in place to offer the workers who are losing their employment new jobs. As the world edges ever closer to a future without fossil fuels, the unforeseen effects have had a disastrous effect on thousands of workers in the sector. Scotland is not known for its crude oil production, and Grangemouth’s closure is seen as the final nail in the coffin.
Petroineos Refining Ltd is aiming to change its operational process
Petroineos Refining Ltd is the company that has been operating the refinery and announced the closure of the refinery, which has not gone down well with the workers at the site. The proclivity of modern-day society to move away from fossil fuels towards renewable energy sources has seen thousands of job losses across the world, and this is just the latest site from a bygone era that propelled the human race towards modernity.
“[PRL] has invested £50 million (US$66.4 million) in creating a modern import and distribution terminal capable of receiving finished fuels by sea for onward distribution to customers around the country. From 29 April, we will be importing all the products necessary to meet Scotland’s demand for transport fuels. – Iain Hardie, Petroineos’ regional head of legal and external affairs
PRL’s workforce has not taken lightly to the news of the refinery closing
We understand the need for companies to evolve and implement new business models and practices. One would expect a company of PRL’s size to have a plan in place to offer the existing workforce new employment. But up until this point, no such plan has been revealed, and the unions that represent the workforce at the site are expressing their concerns and displeasure with the news.
PRL offered some words of appreciation for the workers who are set to lose their jobs, of which there are about 400 people. It has become a regular occurrence for companies to implement drastic changes that have a negative effect on long-time employees.
“Our colleagues have shown incredible commitment, dignity, and resilience during months of uncertainty regarding the future of this [refinery], through the consultation period, phased shutdown, and the start of refinery decommissioning. It has been a challenging period, but their professionalism has ensured security of fuel supply to our customers across Scotland and beyond.” PRL representative
The major Union that represents the workers at the refinery made their own statement regarding the closure of the refinery and did not mince their words. Unions play a critical role in representing workers’ interests and often are the only organization willing to challenge the decision by the employer.
“The UK and Scottish governments have utterly failed to protect refinery jobs at Grangemouth, and thousands face losing their jobs as oil refining in Scotland ends. There are projects like SAF production which can be accelerated to protect jobs, and…pave the way for Grangemouth to become a world leader in green aviation. Unite cited an impact assessment by PwC that concluded the Grangemouth refinery makes an economic contribution of £403.6 million/year and that “almost 3,000 workers [relied] on the refinery’s operations. “[B]oth [the UK and Scottish] governments have effectively allowed China to shut down Scotland’s capacity to refine fuel, as it hopes to use Grangemouth as an import hub. Workers will not forget or forgive,” – Sharon Graham, Unite’s general secretary
Can the region around Grangemouth survive the closure
The company states that there is no alternative but to change its operational process from producing crude oil to a logistical approach. Instead of producing their own products, they plan to circumvent the production process and offer their customers products from a range of companies. It would appear that the statements by the Union representative are spot on as to the real reason for the closure. PRL will make considerably more money by operating as a distribution company than refining its own fuel.
