The union has requested the 125 refinery workers due to be made redundant are put on furlough pay to retain them for longer
The Government “will take seriously any asks” of it from bids to buy Lindsey Oil Refinery, its Energy Minister has stated. In recent correspondence between Unite and the Government, seen by Grimsby Live, the union requested the 125 workers set to lose their jobs are put on full furlough pay.
By putting them on furlough pay, the union argues, “critical skills” will not be lost, and there will be “proper time” for all options for the refinery’s future to be fully considered. Energy Minister Michael Shanks’ reply does not directly address Ms Graham’s furlough pay ask, but says the Government will take seriously any asks of it as part of bids for the site.
The refinery has been overseen by the independent Official Receiver, along with FTI Consulting as special managers, since June 30. This followed the collapse of Prax Group companies in charge. The receiver is also overseeing the sales process.
Unite’s general secretary Sharon Graham wrote to Energy Security and Net Zero Secretary, Ed Miliband, on October 21. “Letting the refinery slip through our fingers, with jobs and skills lost and an even further reliance onimported fuel is simply wrong,” she stated in the letter.
Unite’s general secretary stated the union has been made aware unofficially of “a credible interest” in buying the refinery as a whole site. However, the interested party “requires an extension of time to conduct a full due diligence prior to purchase”.
Ms Graham wrote this escalated Unite’s “deep concern” about the impending 125 refinery worker redundancies. “Once critical skills are lost prior to any purchase they will not return, damaging any prospective purchase of the whole site,” she stated.
Her letter requested “arrangements be made for full furlough pay for workers at Lindsey Oil Refinery in Humberside to allow proper time for all the options to be fully considered”. Ms Graham also referred to meetings between Mr Miliband and Unite.
She claimed Mr Miliband twice informed them that he “advised FTI that bids which save the jobs should be prioritised and that if needed, there could be government money for a viable bid which saved the site”.
However, in a mid-October meeting with FTI, Ms Graham stated they were “not aware of any imperative to prioritise bids that preserve jobs, nor of the possibility of public investment”. Ms Graham asked if “previous promises” that jobs should be prioritised were relayed.
Energy Minister response
Mr Shanks’ response is dated October 28. “I fully recognise the strength of feeling among the workforce and Unite,” states Mr Shanks.
“For the avoidance of doubt, I have made repeatedly clear that long-term and sustainable employment is a priority for the Government – and we sincerely hope that a sale can be secured which achieves that for the workforce.” He goes onto state: “We have also said that we will take seriously any asks of Government as part of any of the bids and that remains our position.”
Mr Shanks reiterates, though, the insolvency process at Lindsey Oil Refinery is being run by the court-appointed Official Receiver. He must “act independently of Government in accordance with his statutory duties to act in the best interest of the creditors”.
The timetable for a sale the Energy Minister states is “driven by the Official Receiver’s statutory duty to expeditiously wind-up the company’s affairs and deliver the best outcome for creditors and the liquidation”. He expects the Official Receiver “to engage with all credible interested parties.
“However, it is also the job of the Official Receiver to determine which proposals are credible and which are not based on that engagement and the evidence available to him. Indeed, where proposals are not credible, I’m sure you will agree with me that it would be unfair on the workforce to perpetuate false hope and expectations.”
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