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Grangemouth industrial dispute
21/04/2008
The Scottish Government has arranged for an independent expert to help both parties resolve the dispute over pensions which may lead to industrial action at Grangemouth Oil Refinery.
Ministers have invited Stewart Ritchie, President of the Faculty of Actuaries, to carry out a study to clarify the issues which are in dispute between INEOS and Unite in relation to proposals for the future of the INEOS pension fund.
The study will also provide an additional measure of independent expertise to the current consultation, and give more time to help both parties reach a negotiated agreement.
The offer has been conveyed to both INEOS and trade union representatives by Ministers, who are now awaiting their response.
If, after due consideration, the parties are favourable to the initiative and to cooperate with the furnishing of relevant financial information, it would mean the suspension of industrial action on April 27 and 28 pending the resumption of substantive negotiations aided by the report which will be issued by the President of the Faculty of Actuaries.
However, the report would be non-binding and if agreement were not reached at the end of the process and the dispute remained unresolved, then industrial action could ensue.
Cabinet Secretary for Finance and Sustainable Growth John Swinney said:
"It is not acceptable for this dispute to go unresolved and inconvenience Scottish people and business. This is a matter that must be solved by constructive dialogue involving both parties.
"To that end, and to encourage this dialogue to take place, Ministers have invited Stewart Ritchie, President of the Faculty of Actuaries to carry out a study to clarify the issues which are in dispute between INEOS and Unite in relation to proposals for the future of the INEOS pension fund.
"As President of the Faculty of Actuaries, Stewart Ritchie is in a unique position to provide the distinguished, independent and quality advice needed to help the parties concerned to find a resolution to these issues.
"Such independent expertise will clarify the situation and should ensure both parties reach the amicable solution which I am convinced is possible - without the disruption that any potential strike action may cause."
Stewart Ritchie OBE
Mr ritchie is a well-respected industry figure and President of the Faculty of Actuaries. For many years he sat on the pensions committee at the Association of British Insurers, the National Association of Pension Funds and the Society of Pension Consultants. He was awarded an OBE for services to pensions and the actuarial profession.
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Text of letters issued by FM
To Pat Rafferty, UNITE
Dear Pat,
Further to your conversation with John Swinney, I would like to put forward to you formally the offer of an independent study led by the President of the Faculty of Actuaries which would be completed by the end of May, or earlier if possible, to help resolve the current pensions' dispute. The study would of course be non-binding but would, I hope, facilitate an understanding of the issues to help in the resolution of the dispute.
What we require from both parties is an understanding to:
- Consider fully the report and furnish the President of the Faculty of Actuaries with all financial information that is required
- Continue with preparedness for substantive negotiations as the preparation of this report does not replace these but is designed to assist both parties reach a conclusion
- Suspend the particular industrial action for the 27 and 28 April although the Union would reserve the right to industrial action if the matter remained unresolved.
I hope you will consider this offer and I look forward to hearing from you in the very near future.
Yours sincerely, ALEX SALMOND
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To Tom Crotty, Chief Executive, INEOS
Dear Tom,
Further to our discussions today I have sent to your office the terms of reference for the proposed study by the President of the Faculty of Actuaries. This will be completed by the end of May, or earlier if possible, to help resolve the current pensions' dispute. The study would of course be non-binding but would I hope facilitate an understanding of the issues to help in the resolution of the dispute.
What we require from both parties is an understanding to:
- Consider fully the report and furnish the President of the Faculty of Actuaries with all financial information that is required
- Continue with preparedness for substantive negotiations as the preparation of this report does not replace these but is designed to assist both parties reach a conclusion
- Suspend the particular industrial action for the 27 and 28 April although the Union would reserve the right to industrial action if the matter remained unresolved.
I hope you will consider this offer and I look forward to hearing from you in the very near future.
Yours sincerely, ALEX SALMOND