A third of the workers at the Lindsey oil refinery near Grimsby have been told they are being made redundant this morning, Unite officials have told GB News.
Some 134 directly employed staff were told this morning, after working a 12-hour shift overnight, that they are being made redundant by the end of next month.
A further 280 staff remain at the site, and will find out their fate in January.
A Unite source said that the area "will never recover" from the loss of such highly skilled workers, adding: "It is one of the most deprived areas of the country".
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The refinery was put into liquidation earlier this year after its owner, Prax Group, went into administration.
Workers had travelled to the Labour Party conference in Liverpool to appeal for help to save the refinery.
The refinery produces petrol, diesel and jet fuel for the UK. The concern is that if the site is allowed to close, the UK will have to rely on supplies from overseas.
The workers made redundant have a notice period until the end of October, which means they receive redundancy payments via the Redundancy Payments Service.
A further 280 staff remain at the site, and will find out their fate in January
|GETTY
Unite general secretary Sharon Graham said: “The Government has been tin-eared to the plight of workers at the second oil refinery facing closure in less than a year. This makes a mockery of government promises to protect workers and its plan for net zero.
"The Government had promised to ensure that job-focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices.
"Unless Labour start to back workers and British industry, it will continue to haemorrhage support."
Despite the sackings, there are at least two bids to buy and operate the site.
Unite General Secretary Sharon Graham (c) joins Unite members attending a rally outside Parliament in support of Lindsey oil refinery workers
|GETTY
Ms Graham supports 420 directly employed workers, plus a further 500 contract jobs, and potentially thousands in the supply chain.
On September 3, Ms Graham joined Unite members attending a rally outside Parliament in support of Lindsey oil refinery workers.
Without the refinery, which supplied 25 per cent of the UK diesel market, the workers say the country is more reliant on imported fuel.
The union claims this will impact the country’s energy security and leaves consumers exposed to price rises at the pump.
Without the refinery, which supplied 25 per cent of the UK diesel market, the workers say the country is more reliant on imported fuel
|GETTY
Furthermore, a substantial amount of diesel is imported from Turkey and India, and it is made from Russian crude.
The UK does not directly import Russian oil, having implemented a ban in 2022.
Russian oil may still enter indirectly through refined products like diesel and jet fuel, especially from countries that process Russian crude.
In 2021, before the ban, Russian oil imports accounted for about eight per cent of Britain's total oil demand.
Despite the sackings, there are at least two bids to buy and operate the site
| GETTYGB News understands that almost 90 per cent of UK oil refinery input is already imported from a diverse range of supply production sources and all importers of oil and oil products must provide proof of origin to demonstrate that goods are not of Russian origin.
A spokesman for the Insolvency Service said: “We can confirm that 125 Prax Lindsey Oil Refinery employees have been informed that their positions will be made redundant at the end of October. A further 255 employees will remain at the site."
"This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency.
"We understand that this is a very difficult time for all those affected by this decision, and the Insolvency Service will fully support employees subject to redundancy via the Redundancy Payments Service.
"The site remains safe, and the Official Receiver continues to prioritise health and safety at the site alongside the ongoing process to secure the sale of the refinery.
"The conduct of the company and its directors, following the liquidation of Prax Oil Refinery, remains the subject of an ongoing Insolvency Service investigation."
Energy Minister Michael Shanks added: "Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery's owners.
“The Official Receiver has made this independent decision now in order to provide employees with as much notice as possible, while concluding the sales process in the coming weeks.
"The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term.
“The Official Receiver is independently assessing potential bids for the future of the refinery and its assets and has made clear he will continue to work with all bidders with credible and deliverable proposals.
"We have taken immediate action to fund a Training Guarantee for refinery workers to support them to find new, secure, long-term jobs, including in the growing clean energy workforce.
"Employees affected by redundancy will have the opportunity to enrol in this scheme from October.”
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