125 Jobs Cut at Lindsey Oil Refinery Amid Union Criticism

A total of 125 jobs will be eliminated at the Lindsey oil refinery following the collapse of its owner, Prax Group, in June. Despite ongoing efforts to find a buyer, the decision has sparked significant backlash from unions, who claim it undermines government commitments to protect workers.

Currently, the refinery employs 420 staff, alongside 500 contract workers. After filing for administration over the summer, Prax has been under scrutiny for its handling of employee obligations. In response to the looming job cuts, Michael Shanks, the energy minister, urged the “wealthy owner” to deliver adequate compensation for affected workers, emphasizing the need for corporate responsibility.

In light of the announcement, Shanks stated that potential bids for the refinery’s future are being evaluated. He expressed hope that a solution could be found that would preserve jobs in the long term. “The majority of the workforce will be retained beyond the end of October,” he noted, adding, “Our thoughts are with the workers, their families, and the community who have been badly let down by Prax Lindsey Oil Refinery owners.”

Despite government assurances, the situation has been met with fierce criticism from labor leaders. Sharon Graham, general secretary of the Unite union, accused the government of failing to respond adequately to the needs of workers, particularly in light of the impending closures at two oil refineries within a single year. “This makes a mockery of government promises to protect workers and its plan for net zero,” she stated.

Graham further argued that the government had pledged to prioritize job-focused bids for Lindsey but has already begun issuing redundancy notices before any bids have been considered. “Unless Labour starts to back workers and British industry, it will continue to haemorrhage support,” she warned.

The union has raised concerns regarding the intentions of the insolvency firm FTI, which reportedly has a “preferred bidder” aiming to convert the refinery into a storage terminal for oil tankers. Graham highlighted that such a move would jeopardize both jobs and the regional economy, further compounding the challenges faced by the local workforce.

As the situation unfolds, the impact on the community and the future of the Lindsey oil refinery remain uncertain, with many hoping for a resolution that preserves employment and supports economic stability in the area.