Final shifts for third of workers at Lindsey Oil Refinery
Unite has reiterated calls for refinery workers to be put on a furlough pay scheme
October 31 marks the final shifts for a third of workers at Lindsey Oil Refinery. Unite has reiterated calls for affected staff to be put on a furlough pay scheme, and the refinery continues to be raised in Parliament.
The independent Official Receiver is overseeing a sales process for the refinery site, located near North Killingholme. On September 30, 125 refinery workers were given redundancy notices.
The redundancy announcement followed an assessment of refinery offers and reflected that no offers produced a deliverable transaction that would see refining operations return in the near team. It was made in late September to give the workers a minimum month's notice.
Unite has argued that the refinery's workers must be furloughed until a buyer is found that preserves jobs and site production. Its general secretary, Sharon Graham, made the call in recent correspondence with ministers at the Department for Energy Security and Net Zero.
While 125 staff work their last day on October 31, the majority of the workforce will be retained for now. Unite has stated they could be issued redundancy notices as soon as December 31.
Unite general secretary Sharon Graham said: "The Lindsey Oil Refinery and the fuel it produces and skills it supports are vital to the UK’s energy security. The government needs to show workers whose side it is on by furloughing Lindsey’s workforce until a buyer that keeps the refinery fully operational is in place."
In the recent correspondence between Ms Graham and the Government, Energy Minister Michael Shanks said it will "take seriously any asks of Government as part of any of the bids" for the refinery site. An Insolvency Service spokesperson has previously said the Official Receiver is committed to exploring the best possible outcome.
Refinery's continued raising in Parliament
Martin Vickers MP (Conservative - Brigg and Immingham) has twice raised the the refinery in Parliament this week. He asked on Monday, October 27, for "any indication of what support the Government might give, and when a final decision might be taken?"
"Obviously, the failure of the company that was previously running the Prax Lindsey Oil Refinery has had a really significant impact," replied Mr Shanks. "We have been working to make sure that the process that the Official Receiver is going through is concluded as soon as possible.
"It is for the receiver to decide who the potential buyers are," he said. "It is looking at a shortlist of credible candidates, but given the nature of the insolvency, it is not for the Government to decide what is built next on that site."
On Thursday, October 30, Mr Vickers asked whether a statement in the House of Commons could be arranged in the next few days on the refinery situation. He stated: "There is growing concern among union representatives, the local community and possible investors in the refinery, that the Government do not favour a bid that takes in the entire site and continues refining products. Indeed, one potential investor is considering a judicial review of the process."
Leader of the House, Sir Alan Campbell, stated in response: "Our thoughts remain with the future of the Lindsey Oil Refinery workers at what we understand is a very difficult time for the community.
"I know he continues to raise this matter with Ministers. I will raise it with Ministers and ensure that he and, where appropriate, the House are updated on any developments."
A wider discussion on the future of UK refineries and oil and gas was also held by the Energy Security and Net Zero Select Committee this week. Paul Greenwood, the UK chair of Exxon Mobil, said the environment for UK refineries currently is "barren" and it was facing "existential threats".
He highlighted international competitors' as being "massively advantaged" over costs they face, such as energy and CO2-related costs. Unite's regional coordinating officer, Harriet Eisner, said the union recognises the need to get to net zero. "But it needs to be a properly managed transition that gives people hope."
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