The proposed closure of the Grangemouth oil refinery in Scotland at the beginning of next week joined the 10p tax rebellion, the credit crunch and bulimic John Prescott's forthcoming memoirs in the queue of problems now stretching from the door of No.10 round the corner on to Whitehall.
Once again it is pensions that are at the heart of the problem. Grangemouth's 1,200 workers are angry about plans to cut the value of their scheme, and plans to close the final salary scheme to new employees.
At 71 years since they last did so, oil refinery workers fall into one of my categories of workers that rarely strike, but they are one of those groups for which the ramifications across the economy are huge and immediate.
Scottish first minister Alex Salmond is calling for both sides to get back around the table, amid fears that the closure could quickly affect petrol supplies to Scotland and the north of England.
And if Unite and the operator of the plant Ineos cannot resolve this dispute quickly the effect will be felt before the strike takes place.
A crude oil unit has been closed already ahead of the strike and in preparation for it. You don't need to be JR Ewing to know that oil refineries comprise more complex technology than simply turning it off. The unions clearly have Ineos and indeed the whole country over a batrrel once again if you'll excuse the pun.
Clearly it will take a similar amount of time to turn it back on again.
Ineos says it's disappointed with Unite's refusal to attend ACAS talks, believing its pensions offer is competitive:
INEOS is proposing to retain a final salary scheme for all existing members, paying 1/60th salary for every year worked, still an attractive and competitive pension scheme compared to other pension plans across ons in the country. INEOS will still pay the lion’s share of the costs, but for the first time the workforce will have to make a contribution to their retirement. INEOS has proposed a 6% employee contribution, phased in over the next 6 years. This will still leave employees in a better position than the majority of UK private company employees.
Doesn't seem too bad to me - our company's up for sale and we're likely to lose our final salary pension scheme altogether
Unite needs to be realistic in its pension demands or companies in some sectors will reduce their competitive edge and leave themselves open to a private equity deal. A private equity deal that will doubtless include huge benefits from the closure of pension benefits.
Yes the union should protect its workers but it also needs to keep an eye on the bigger picture.
