The UK government said it is “stepping up plans” to support workers at the Grangemouth refinery ahead of its closure, but a leading union has criticised the support package as “smoke and mirrors”.
Grangemouth operator Petroineos confirmed last month that it will close Scotland’s only oil refinery in 2025, leading to the loss of 400 jobs.
There are concerns the looming closure will lead to a “significant economic shock” in the region, amid fears of thousands of job losses in the wider supply chain.
During a visit to Scotland on Thursday, UK energy secretary Ed Miliband and Scottish government cabinet secretary Gillian Martin attended a meeting of the Grangemouth Future Industry Board.
Miliband said the Labour government “continue to stand with Grangemouth workers” and highlighted a £100 million joint support package with the Scottish government.
However, the bulk of the support package came from previously announced funding for the Falkirk & Grangemouth Growth Deal, with only £20m in newly allocated funds.
The Department for Energy Security and Net Zero (DESNZ) said Forth Valley College in Falkirk will receive part of this funding to deliver “bespoke support” for Grangemouth workers.
DESNZ said the college will soon contact workers at risk of redundancy to “start building a skills and support package to meet their individual needs”.
The scheme will also assess their current skills and qualifications against future skills needed for local clean energy roles in the area.
The UK and Scottish governments will use the findings to deliver “targeted interventions” to upskill the local workforce ahead of the closure, DESNZ said.
‘Smoke and mirrors’, Unite says
But the influential Unite Union said the focus on skills and retraining amounted to “smoke and mirrors”.
Unite said the UK and Scottish governments should prioritise saving jobs at risk, pointing to a plan to transform Grangemouth into a biofuels facility.
Unite general secretary Sharon Graham said the Grangemouth job losses are happening “on this government’s watch”.
“The government should be focused on preserving the current jobs rather than making a smoke and mirrors announcement around training for jobs that don’t exist,” Graham said.
“If the UK and Scottish governments cannot get their act together to save 400 jobs at Grangemouth, workers in Scotland will have no faith that government can secure a just transition for thousands of other Scottish workers.
“Unite will not stand by and allow a jobless transition and the creation of yet another working class wasteland. Not to save Grangemouth is a dereliction of duty.”
Graham highlighted reports the UK government is planning to change fiscal rules for investment, and said the extra funds “should be used in Grangemouth”.
“This is a strategic location vital to the success of the Scottish economy,” Graham said.
“The government should stop dancing around its handbag and commit to a public stake to secure the long-term future for Grangemouth.”
Unite Scottish secretary Derek Thomson also criticised the focus on skills training.
“Providing re-training, when well-paid skilled jobs don’t exist is wrong,” Thomson said.
He added Grangemouth as a “vital role to play” in developing renewable energy and sustainable fuels, and said governments need to show “courage” to deliver it.
‘New opportunities’ for Grangemouth workers
Miliband said the UK government is “putting money on the table to secure workers good onward employment”.
“By working in partnership with the Scottish Government, we’ve unlocked an unprecedented joint investment plan to support workers and secure Grangemouth’s future, and I will continue to spare no effort to drive this work forward,” Miliband said.
Meanwhile, Martin said the Scottish government’s immediate priority remains supporting the workers affected by the “regrettable” closure.
“We will do everything we can to ensure they are supported to retrain and move into adjacent industries within the wider Grangemouth area,” Martin said.
“These workers are highly skilled and have an important contribution to make locally and nationally.
“Our investment will help to unlock valuable new opportunities for them and ensure that their skills and experience continue to benefit industry in the area and the wider community.”
DESNZ said the skills and training package is open to workers at both Grangemouth and Finnart Oil Terminal.
It will also be supported by the UK government’s Office for Clean Energy Jobs.
DESNZ declined to comment further when approached by Energy Voice.