Ineos go all in, Unite fold

The best analogy of the deal that was reached over the Grangemouth plants future this morning comes from the world of poker.

Ineos possibly sick of the infighting and continuous threat of strikes from the Unite Union yesterday announced they were shutting down the petrochemical part of the plant and considering the future of refinery. It was the equivalent of putting all your chips unto the table and being prepared to lose everything.

Unite had rejected the 'last chance survival' plan offered by Ineos, but this morning with 800 jobs apparently already gone and 570 others threatened they capitulated. Accepted all the conditions laid down by that plan as they say "warts and all". Equivalent to throwing all your cards away in poker.

This afternoon we also saw the new Secretary of State for Scotland Alistair Carmichael and Scottish Finance Minister John Swinney together in Grangemouth to talk with Ineos this afternoon.

Addressing the press after that meeting Mr Carmichael said:

"We are in a much better place today in relation to the future of the plant than we were yesterday.

"There remains, of course, a great deal to be done."

Mr Swinney added:

"This plant has got a great future, everybody accepts that Grangemouth has got a great future.

"What we need to do is resolve these outstanding issues, get the investment plan implemented and take forward and improve the prospects for the people that that work in this plant."

The past 24 hours has certainly proved to be a long time in the  life of 1,370 highly skilled jobs in Grangemouth and I hope that in the future both sides will sit down and discuss differences in a constructive and respectful manner long, coming to a conclusion long before it escalates to such potentially damaging circumstances.

Tesco find a conscience via their complaints folder?

According to the Grauniad Tesco want the Department of Work and Pensions to change the nature of the scheme in which people will work in private sector firms for up to 8 weeks, with only the offer of an interview at the end of that time.

In comes after a week that the company who takes one pound out of every SEVEN £8.50 spent in the UK faced accusations of further profiting from slave labour. Having worked in retail  I know that someone can be trained to restack shelves in a morning. They can learn to operate a till in a similar period of time. The additional time that is required to get people up to speed is spent on knowledge of stock and gaining that.

Of course I started in retail as a Christmas temp, less than 8 weeks before Christmas. I was up to speed in a couple of days, I was then offered full time work after Christmas and have trained up many people to work in a retail environment since. It didn't take eight weeks for the manager of my branch of H. Samuel to offer me a full time position. I rose to have areas of responsibility in the chains then largest store on Shaftesbury Avenue when the chain was cutting back on staff I was moved to another branch, retained and given new responsibility because the Area Manager had also learnt that I had potential.

Yes we should be giving people the chance to experience work, but like Waterstones who have now withdrawn from the scheme it should be with the end goal of there being a job on offer. Therefore it should be a short apprenticeship to prove you are ready and able to work for that company. Not a means by which the government is forcing you to take action, and may remove the meagre Job Seekers Allowance you are on if after the first week but before the maximum eight you leave the position. That is the enslavement element. That is what Tesco now do not want to be associated with.

However, the telling part in the Grauniad article is this:

Supermarket group Tesco said it has asked DWP officials to make the work experience scheme voluntary after thousands of angry customers wrote in and posted messages on Twitter and the company's Facebook site accusing the multinational of profiting from hundreds of thousands of hours of forced unpaid work.

So it appears that the sudden outpouring of compassion may only have come with one eye of the profit margins.


The Lib Dems stood for Parliament saying:

• Scrap the arbitrary target of 50 per cent of young people attending  university, focussing effort instead on a balance of college education, vocational training and apprenticeships.
• As part of our immediate job creation package, fund 15,000 new places on Foundation Degree courses and fully fund the off-the-job costs of adult apprenticeships, which currently have to be met by employers, for one year.

We were talking about apprenticeships as ways to get people back into work. This scheme is not an apprenticeship it is work experience which can result in you losing benefit if you drop out of it (probably because you don't like that particular experience or possibly for health reasons).

We need to create jobs, whether that is via apprenticeships or whatever route, not merely give people the experience of work without anything at the end of it for them.

Where's the Reader's Digest Prize Draw When they Need it?

Tom Champagne may have stopped writing the cheques for the Reader's Digest Prize draw in 2003, but the 117 employees of the UK arm of Readers Digest would love to see an envelope landing on its doorstep in Swindon with his cheery signature saying you have won £125m.

For that is the deficit in the Reader's Digest UK's pension fund which has led to the company that first started trading here in 1938 to enter administration. The US parent company is expected to come out of Chapter 11 bankruptcy protection shortly after struggling with interest on its own £1.4bn ($2.2bn) debt.

Troubled Borders

Almost a year ago on the 26th November last year, Woolworths went into administration

Today there is more potentially sad news for the High Street, today there is the first sign that Borders, the bookseller, is faltering. Their website has stopped taking new orders and there are rumours that they do not have enough money to make it through to Christmas.

Borders of course suffers doubly, they are dwarfed as far as High Street bookselling goes by Waterstones' 303 stores to 45. Online they are obviously small fry compared to Waterstones. Of course unlike MFI that also disappeared around the time of Woolworths last year there is no disparity in product. The books that they sell are identical in every way to those of Waterstones or Amazon or any other bookseller of course. What may be their undoing in the matter of economies of scale. They are a smaller purchaser, and therefore seller of the same items and therefore may not be able to get the same deals to undercut in price the other stores.

Of course my most accessible Borders store is in Glasgow, without a car Fort Kinnaird in Edinburgh is bit of a trek, especially when there are three Waterstones either on or close to Princes Street, even Blackstones isn't that difficult to get to from the city centre. Plus I also have another Waterstones in Livingston and one at the Gyle close to where I work. So yes there is a case of near Tesco-like saturation of the local market of the biggest bookseller in the UK.

It may well be a sad day for Borders, and I shall miss being able to browse their shelves when I do get a chance, as every so often I do find something different there, like you do when you visit somewhere that is laid out different from your normal shopping location style.

Tonight Matthew I'm Gonna Be....

....David Kerr candidate for Glgasow North East, John Mason MP for Glasgow East and Stewart Hosie SNP Tresury Spokesman.

Yeah, Tam Smith SNP PPC for Linlithgow and Falkirk East is back at his Rory Bremner act, this time taking on all three without crediting any.

Today he is saying:

"Scotland's banking workers deserves more than a direct line to the breadline. These reforms must not jeapordise jobs in this industry. [Kerr see here]

"As an SNP MP for this area, jobs in Linlithgow & East Falkirk, and in the city of Edinburgh [said about Glasgow North East here*], which have a direct impact on this consitueency[sic], will be my top priority and I will speak up strongly and loudly against any threat to them.

"Since Tuesday's announcement voters on the doorsteps in Bo'ness, where I am campaigning on behalf of Ann Ritchie in the local by-election have been telling me that frontline workers should not pay the price for the problems their bosses caused.

"It is clear the best way to secure a strong future for jobs in West Lothian and Falkirk district in financial services is to send an SNP MP to Westminster to speak up for this constituency and to speak up for our jobs.

"The UK Government is the main owner of these banks and any sell off that puts this constituency's jobs or Scotland's economy at risk is unacceptable." [Compare those two paragraphs with John Mason's words here]

Tam Smith continued [apparently]:

"We must have competition in our banking sector but the potential loss of local branches and uncertainty of ordinary workers in financial services is worrying for many. [Make that Mason]

Retail workers in our banks are already facing up to job losses. A vote for the SNP will tell the UK Government that West Lothian and Falkirk District's workers will not pay for Labour's broken economy." [Make that Hosie]

Let me make it perfectly clear, many people who live in Linlithgow and East Falkirk are affected by banking jobs. Some of those that get on and off the bus with me in Edinburgh Park work in some of the banking offices situated there. Lloyds have been instructed to off load Intelligence Finance which could affect the jobs of 300 people employed at Kirkton Campus in Livingston. The 3,700 frontline bank jobs that are being cut by RBS to take 14% off their staff wage bill will undoubtedly affect others.

However, the SNP had at the initial outbreak of the banking crisis pledged money from a fictious Scottish Bank in some future independent Scotland to deal with this situation. The amount they offered was £50m which now seems small fry compared to what was needed. All the while Vince Cable had been warning that the futures of our banks was not sustainable from years before, though like John the Baptist he was ignored and his pleas almost thrown out into the wilderness.

Sadly we have got to a stage where the overstretched banks may need to offload staff to survive and protect the jobs of the majority. Other industries have also gone through that sort of situation over recent months. Not all have had the benefit of a Government injection of money to see them through so the job losses have happened earlier. Rather that merely speaking 'up strongly and loudly against any threat' of job losses, Linlithgow and Falkirk East needs an MP that will look to the future, getting those who have already faced or will face the inevitable into a job. It means encouraging jobs to come to the region, using the skills that our people have got, and a lot of recent redundancies in the area have been in skilled positions.

According to the West Lothian Courier West Lothian and Falkirk are currently ranked equal 10 out of all the Local Authorities in Scotland when it comes to unemployment. At 4.4% it is 0.4% higher than the Scottish average and 0.2% higher than the UK average. There has currently been a slip to 900 vacancies listed at local job centres, but there are 4,651 people claiming Job Seekers Allowance, that is 5 people for every job that is going.

We need to hear of real action to real jobs into the area. We need to utilise the workforce's that have been or are about to lose jobs from some of the firms locally that have been laying them of. People with IT, production and financial skills are here in our area desperate to get back into work. We need to seek out those green shoots when they do appear and persuade companies as they recover that investment here gives them a skilled and dedicated workforce. Skills in some of the sectors that have been hit are transferable to other sectors, there is more to a financial job that just what it says on the time managers, IT workers, accountants, data analysts etc are also amongst those that will be losing their works. But all will have transferable skills.

So rather than a short-sighted narrow view of Smith-Hosie-Mason-Kerr we need to get others to think outside the box, see what is available, see what they can offer. Just like many of us who graduated in the early 90s had to do we had to be imaginative it what we did next, throwing off our narrow pre-conceived ideas of where we were heading.

*Sadly again on the De Havilland subscription site, but check out the key phrases on google.

What Alex Said and What he Missed Out

Speaking today in Inverness at the start of the SNP conference Alex Salmond tried to do a Gordon Brown and list some achievements. Here is what he said, in brackets is what he missed out.

"Today, I am proud to be addressing you as First Minister on behalf of a successful and popular SNP administration – delivering for the people of Scotland.

"Scotland is a great nation, and is even better with the policies we have already introduced in our first two years – freezing the Council Tax (but he promised to Axe it and replace with a Local Income Tax)), recruiting 1,000 more police (the actual promise was for 1,000 extra on the street, not yet achieved), saving A&E units, restoring free education (they actually promised to dump student debt and have yet to tackle that), and moving quickly in the downturn to implement an economic recovery plan that is protecting 15,000 jobs."

"Admittedly the last point was trying to claim credit for dealing with the unexpected, however 8,500 construction jobs have been lost in Scotland this year may have something to do with the failure to match school building pledges brick for brick. Only schools started by the last administration or through Local authority funding have been completed, none have been started as a result of Parliament funding as promised. Unemployment has also more than doubled in Scotland's rural areas. 700 jobs went at Diageo's bottling plant in Motherwell due to SNP bickering. 700 jobs at the Royal Bank of Scotland, 500 more through Lloyds subsiduaries, 300 redundacnies at Scottish Universities, 850 at Hewlett Packard in Erskine. Even Skills Development Scotland an initiative that should be helping those out of work get back to work laid off 160.

Here in West Lothian 500 jobs are going at Bausch and Lomb’s plant in Livingston due to the SNP's failure to maintain the areas Regional Selective Assistance status. 58 went with the closure of the SEH Europe plant in Livingston, 60 at Russell Europe's distribution plant in Bathgate, HBoS cut many jobs from its IT base in Livingston, 140 Jobs at Sun Microsystems in Linlithgow.

Now I've not been keeping count and I could go on, but I reckon I'm pretty sure I'm over 15,000 right there, all with in the last 12 months or so.

Politicians Letting Down West Lothian Workers

The CEO of West Lothian Chamber of Commerce has slated local and national politicians in light of the recent announcement that Bausch & Lomb's plant shutting down in Livingston. He said:

"It is disappointing that during recent years Alistair Darling, Iain Gray, Jim Devine, Margaret Hodge and Michael Connarty all had opportunities to influence changes that might have helped businesses like Bausch & Lomb to stay in West Lothian.

"The consequence of their inaction is that Ireland is now perceived internationally as a more attractive business location."

He is furious that the politicians haven't done enough to protect the regions eligibility under the Regional Selective Assistance programme (RSA). The area had maintained RSA status until last year, i.e. just before the world was thrown into recession, when European officals decided to reduce the number of Scottish areas eligible. Firms in such areas can claim up to 35% grants towards investment. It should be noted that Bausch & Lomb's other European plant in Waterford does now benefit from RSA status that the Livingston plant no longer does. Chamber President Duncan M Walker said:

"The factory is closing not because they're failing to produce innovative products, it's because the location in Ireland has RSA – Bausch & Lomb can get more activity while reducing costs. If we'd had more support from the people David McDougall mentioned, we might have retained the status which would mean Bausch & Lomb might have stayed."

Five years ago the company had won the Scottish Engineering Award for its work with "world-class technologies". As company Chairman Gerald M Ostrov said the closure was "by no means a reflection on our employees' professionalism, dedication, or efforts", but rather a purely financial decision.

Is it possible that Westminster and Holyrood could have done more to help maintain these highly trained, technical and skill jobs stay in the region? The writing was already on the wall even when the RSA was in place with firms like Motorola and NEC and others that formed the once renowned Silicon Glen pulling out to focus on other production plants. The area had been suffering even before the latest economic difficulties. The various industrial campuses around Livingston could become somewhat more of a ghost town if companies cannot be persuaded to stay in the area.

Supermarkets, Booze, SNP and the Border

Way back on 18 June over at Jeff's blog he rejected my comment that the SNP price per unit policy would lead to booze drives over the border to England. Something I'd earlier that day covered in more detail here.

Well it appears that the Supermarkets themselves are thinking of ways to circumvent just such a proposal. ASDA chiefs say there is nothing to stop them setting up distribution centres south of the Border so that online Scottish shoppers can pay English prices. That could be worrying for the workers at the supermarkets distribution centres that currently hug the M8 between Edinburgh and Glasgow.

So while the SNP are salivating over the possibility of declaring internet independence by changing Government address from .uk to .sco the same world wide web also is a reminder that the border with Englandshire is only about 70 miles away from our two major cities. So making too radical a change in Scotland can affect commerce, jobs etc by companies merely moving that short hop.

Toffee Makers Chewing Over Closure

Millar McGowan with factories at Broxburn and Stenhousemuir is facing to possibilty of closure with the potential loss of 149 jobs.

The makers of Pan Drops, Wham and Highland Toffee bars which has a history going back to 1884 from the John Millar and Sons and McCowan's companies, went into recievership again yesterday. The company has been sadly no stranger to financial difficulties having already escaped recievership last year. However, this latest blow is as a result of the new firm being unable to resturcture its costs.

Unless someone steps forward to buy the company the employees may be laid off and production ceased in the next few weeks.

Sadly for many Scots the company also produces the Irn Bru Bars.