The owners of the giant Grangemouth petrochemical site have decided to keep it open, saving thousands of jobs from being lost.
The move followed acceptance by the Unite union of a survival plan, including a pay freeze, ending of the final salary pension scheme and other changes to terms and conditions.
Ineos had said it would close the site, which employs 800 employees, after workers refused to sign up to the changes.
But it said it would immediately reopen the site and the adjoining oil refinery, which have been shut down for the past week as a result of the dispute.
A number of contractors have been laid off or switched to other sites.
Workers heard the news at a meeting with managers this morning.
Politicians from the UK and Scottish governments have been pressing the two sides to break the deadlocked row, warning of the grim impact on the economy if the plant had closed.
Unite’s general secretary Len McCluskey met shop stewards and managers at Grangemouth yesterday after announcing that the union had decided to “embrace” the survival plan.
“Unite’s withdrawal of its opposition to the company’s survival plan , which was already supported by 50% of employees on the site, has allowed the shareholders to invest a further £300 million in the company,” Ineos said in a statement.
“This money will be used to fund ongoing losses and to finance the building of a gas terminal to bring in shale gas ethane from the USA.
“The Scottish government has indicated it will support the company’s application for a £9 million grant to help finance the terminal and the UK Government has given its preq-ualification approval for a £125 million loan guarantee facility.”
Ineos said Unite had made a “dramatic U-turn” and had agreed to a three-year pay freeze, no strikes for three years, moving to a “modern” pension scheme and changes to union agreements on the site including no full-time union convenors.
Scotland’s First Minister Alex Salmond said: “This news is a tremendous fillip for the workforce and the whole Grangemouth community, following what could have been a potential disaster.
“It’s been a great team effort from all concerned, including the unions and workforce, the management, Governments – and BP, who have made a material contribution to help defend and secure Scottish jobs and livelihoods.
“I am delighted that people have rallied round to protect these jobs, and now we can all agree that Grangemouth has an outstanding future.
“Clearly for many people across the communities of the Forth Valley, Wednesday was a day of despair – today is quite different, and is a day of great satisfaction that not only has a key part of Scotland’s industrial infrastructure been saved but that people can look forward with confidence to a bright future.”
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