In a move that will significantly impact the local economy, nearly one-third of the workforce at the Lindsey Oil Refinery in North Killingholme, North Lincolnshire, is expected to be made redundant by the end of October. The Insolvency Service has announced that 125 employees will face redundancy leaving 255 workers at the site. After Prax Group, the owner of the refinery went into insolvency in June, the refinery entered administration. The Government’s official receiver assumed control. However, this move has come under criticism from the Unite union, who argue that more support could have been provided to sustain operations and safeguard jobs.
Following a thorough review of the business’s status post-insolvency, the Insolvency Service took the decision to make the redundancies. The employee’s affected are assured of receiving assistance via the Redundancy Payments Service. The sale of the refinery is still being pursued while an investigation into the conduct of the company and its directors is being carried out by the Insolvency Service following the liquidation of the Prax Oil Refinery.
Sharon Graham, the general secretary of Unite, voiced her disappointment at the government’s response. She pointed out missed chances to uphold employment-focused bids for the refinery. She criticised the government for their apparent lack of prioritisation for worker protection amidst promises of a net zero future. As the local community wrestles with the looming redundancies and uncertainty over the refinery’s future, the situation remains tense.
The Lincoln Post adapted this story from the original report by www.bbc.com.
