Latest news with #CommunityUnion
Yahoo
4 days ago
- Business
- Yahoo
Tanker drivers lose jobs after refinery collapse
More than 100 tanker drivers have been made redundant after the Prax Lindsey Oil Refinery filed for insolvency. Axis Logistics, the main delivery firm for the refinery in North Lincolnshire, went into administration along with parent company Prax Group at the end of June. Administrator Teneo said the majority of Axis's 137 employees had been made redundant, with a few being kept on "for a limited period to support the orderly closure of the business". Community, the union representing the majority of 120 drivers, said the "devastating news" had "come as a shock". Prax Group bought the Lindsey Oil Refinery from French company Total in 2021. The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February 2024. The Official Receiver is ensuring continued safe operations at the site, the government has said. Teneo said Axis had "suffered operational challenges as a result of the wider group insolvencies". The tankers would be sold to raise money, the administrator added. Paul Warren, from the Community Union, confirmed all 120 tanker drivers had been told they were being made redundant. He said the news "came as a devastating shock" and the morale of the drivers "is one of devastation". "It's just a really sad and sorry time," he added. Martin Simpson, who is one of the drivers affected, said: "Yesterday we were told at 4pm via a Teams meeting we would lose our jobs with immediate affect, and no prior warning." He added that he was "very angry" and had not heard when or how he would receive any redundancy payment. He added that all the drivers will now be "chasing the same job". About 50 were based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland. A Community spokesperson added: "We are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more." The "dedicated" workforce deserved "far better", the spokesperson added. News of the redundancies comes after a number of petrol stations around Lincolnshire, which were supplied by another company within Prax Group, ran out of fuel over the weekend. On Friday, the Department for Energy Security and Net Zero (DESNZ) said an agreement had been reached to resume deliveries in and out of the site. A DESNZ spokesperson said: "An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The Official Receiver is ensuring continued safe operations at the site. "The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK." Martin Vickers, MP for Brigg and Immingham, said he will visit the refinery on Friday. "My main aim is to ensure the continuation of the facility and the jobs that go with it because it's a vital part of our local economy," he said. "The government has given assurance that they will maintain supplies and I have no reason to doubt that that it the case." Prax Group has been contacted for a comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Click here to download the BBC News app from the App Store for iPhone and iPad. Click here to download the BBC News app from Google Play for Android devices. Deal struck over fuel deliveries at refinery Workers 'left in dark' over oil refinery job fears Government supporting refinery as 420 jobs at risk Prax Group Axis Logstics Department for Energy Security and Net Zero (DESNZ)
BBC News
4 days ago
- Business
- BBC News
Lindsey Oil Refinery collapse leaves 120 tanker drivers redundant
More than 100 tanker drivers have been made redundant after the Prax Lindsey Oil Refinery filed for Logistics, the main delivery firm for the refinery in North Lincolnshire, went into administration along with parent company Prax Group at the end of Teneo said the majority of Axis's 137 employees had been made redundant, with a few being kept on "for a limited period to support the orderly closure of the business".Community, the union representing the majority of 120 drivers, said the "devastating news" had "come as a shock". Prax Group bought the Lindsey Oil Refinery from French company Total in 2021. The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February said Axis had "suffered operational challenges as a result of the wider group insolvencies".The tankers would be sold to raise money, the administrator added. Paul Warren, from the Community Union, confirmed all 120 tanker drivers had been told they were being made redundant. About 50 were based at Immingham, with 25 to 30 in Thurrock, a similar number in Kingsbury and about 10 in Scotland. A Community spokesperson said: "We understand that this afternoon our members at Axis Logistics in Immingham were called to a meeting with management and were informed that they would be being made redundant.""We are seeking further information from the administrators on next steps, and we will be communicating this to our members as soon as we know more."The "dedicated" workforce deserved "far better", the spokesperson added. News of the redundancies comes after a number of petrol stations around Lincolnshire, which were supplied by another company within Prax Group, ran out of fuel over the Friday, the Department for Energy Security and Net Zero (DESNZ) said an agreement had been reached to resume deliveries in and out of the site.A DESNZ spokesperson said: "An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The Official Receiver is ensuring continued safe operations at the site."The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country and stock levels are normal across the UK."Prax Group has been contacted for a comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Click here, to download the BBC News app from the App Store for iPhone and here, to download the BBC News app from Google Play for Android devices.
BBC News
01-07-2025
- Business
- BBC News
Lindsey Oil Refinery workers 'left in dark' over job fears
Employees have been left "in the dark" after the owner of an oil refinery went into administration, a worker has Lindsey Oil Refinery Limited, which owns the plant in Immingham, North Lincolnshire, filed for insolvency on Sunday, putting at least 420 jobs at worker, who asked to remain anonymous, said he was "worried sick" not knowing if he would be paid his Monday, the government said it would "provide short-term funding to cover the essential operating costs of the refinery" after Unite the Union said 1,000 jobs could be affected when taking into account contractors and the supply chain. The worker said: "I'm feeling let down and upset. We've heard nothing from the company and nothing from the unions – they're just staying tight-lipped. "I'm panicking because I've got a mortgage."At the moment, we don't know if we're going to be paid. So it's playing on your mental health – it's really stressful."He said the collapse of the company had come as a "shock". Prax Group purchased Lindsey Oil Refinery from French company Total in to the Department for Energy Security, the plant recorded losses of about £75m between the takeover in 2021 and February Community Union said its members were "increasingly concerned" and wanted "clarification on where they stand and how they will be impacted by the situation in the wider Prax Group". "We are pursuing an urgent meeting with the company to address our members' concerns," a spokesperson living close to the refinery also expressed their Clark, 85, from the nearby village of North Killingholme, said: "If it's that important, then it's got to be saved and the community will be backing that."Andrew Smith, the manager of the nearby Ashbourne Hotel, added: "I think it would be a big sad loss for everybody if it were to go. It will have a big impact on the community as there's a lot of people locally that work at the refinery or the suppliers." Built in 1968, the Lindsey refinery can process about 113,000 barrels of oil a day. Mick Simpson, a Unite regional officer, said the refinery was making "a significant contribution" to the local and national economy, supplying fuel to petrol stations and in the House of Commons on Monday, Michael Shanks, the energy minister, said the government was actively looking for a buyer for the business and, if that failed, other potential uses for the called on Prax Group's leadership to "do the right thing and provide support to the workers through this difficult period".Earlier in the day, he called for an "an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency".The Insolvency Service said the official receiver would "wind up the companies in accordance with his statutory duties". "He also has a duty to investigate the cause of the companies' failure and conduct of current and former directors," it consultancy firm Teneo said it had been appointed administrator of State Oil Limited, Prax's parent Boardman, from Teneo, said administrators were "considering all options for the group, including the prospect of a sale for the group's upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency".Prax Group has been contacted for comment. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Daily Mail
19-06-2025
- Business
- Daily Mail
Unions mull over Liberty Steel as two electric arc furnaces in Rotherham stand 'idle' for nearly a year
Liberty Steel's two electric arc furnaces in Rotherham have now been 'idle' for nearly a year – as unions hold talks about its perilous position with billionaire owner Sanjeev Gupta. Liberty's subsidiary Specialty Steel UK faces a winding-up petition, and trade unionists want Gupta to step aside. Community Union leader Roy Rickhuss met Gupta yesterday. Specialty Steel UK (SSUK) employs 1,450 people in the North, Midlands and Scotland. Chris Williamson, union secretary at Rotherham, said: 'We feel like we're being wound down.' Liberty said it had covered wages, maintaining the sites and sustaining the business, costing £200million, adding: 'We're working on all viable solutions to ensure a long-term future for Specialty Steel.' Liberty's owner is being pursued by creditors, led by administrators for Greensill Capital, which collapsed in 2021 having lent Gupta's firms £3.6billion. If wound up on July 16, the Official Receiver would take control of SSUK and seek a buyer.
The Guardian
27-05-2025
- Business
- The Guardian
Liberty Steel's South Yorkshire operations lost £340m in four years
Liberty Steel's operations in South Yorkshire lost £340m in four years, according to figures that shine a light on the difficulties facing a business on the brink of liquidation that employs 1,450 people. The company, owned by the metals magnate Sanjeev Gupta, is desperately searching for investors or lenders before a 16 July deadline, after London's high court granted it extra time last week. Its South Yorkshire subsidiary includes an electric arc furnace at Rotherham, plus steelworks in Stocksbridge and Brinsworth. Court documents suggest that previous efforts in 2022 to sell the latter two sites to an unnamed venture capital fund or a 'Chinese conglomerate' came to nothing. The Guardian revealed last week that the Rotherham plant and a similar operation in Motherwell, Scotland, have not produced any steel for about nine months because of a lack of funds to buy vital materials, with staff on furlough on 85% of their salaries. The depth of the crisis has prompted Community, the biggest union representing steelworkers at the plants, to write to Gupta, a Dubai resident, asking for assurances of his ability to continue to run his businesses in the UK. If Gupta is unable to do so, the union 'will be forced to demand that you step aside', according to a letter seen by the Guardian from the general secretary, Roy Rickhuss. The UK steel industry is under severe pressure, with 2024 production slumping to the lowest since the 1930s. The government passed emergency legislation in April to take control of British Steel's two blast furnaces at Scunthorpe to prevent up to 2,700 jobs being lost within days. Another crisis is brewing at Liberty Steel, with some industry figures expecting the government to step in to ensure the plants keep running if they fall into liquidation – although it is not thought that the government will give financial support to Gupta's companies. Liberty Steel companies, grouped under Gupta's informal GFG Alliance, have not filed accounts since 2021, when the group was plunged into turmoil by the collapse of the lender Greensill Capital. Investors who backed Greensill are now seeking to recover $4.5bn (£3.32bn) lent to Gupta's businesses. Gupta has in recent months lost control of a series of his businesses around the world, including Liberty Steel's eastern European companies, the Whyalla steelworks in South Australia, and his metals trading business in the UK. At the same time, the UK's Serious Fraud Office is investigating suspected fraud, fraudulent trading and money laundering related to GFG's financing with Greensill. Gupta's ownership of the South Yorkshire operation – formally known as Speciality Steel UK (SSUK) – is also under threat, after a supplier issued a winding-up petition over unpaid debts, and a company plan to write off debts related to Greensill failed. That process gave a rare insight into the finances of Liberty Steel. Documents disclosed in court showed deep losses since March 2020 at SSUK, albeit with a slight improvement up to March 2024 as the company focused on higher-value aerospace and defence products for companies including Rolls-Royce and Airbus. However, the hiatus at the Rotherham site since last July means losses are likely to have risen again. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion In December, the company submitted to the court that it was insolvent, and would face compulsory liquidation if the restructuring deal failed. It is 'considered likely that a 'special manager' would be appointed' by the government's official receiver, the company said, as happened in 2019 when British Steel fell into liquidation. Jeffrey Kabel, Liberty Steel's chief transformation officer, said that despite 'substantial challenges, particularly for our colleagues at the Speciality Steel plants and their families, our commitment remains unwavering'. He said the business faced 'persistently difficult operating conditions in the UK steel sector', but Gupta had given 'over £200m in personal funding' to pay salaries during inactivity. 'We are actively exploring every viable option to avoid an uncontrolled liquidation and protect the business as a going concern,' Kabel added. Workers have lost confidence in Gupta, Community's leader said in his letter. 'Our members no longer believe what the company says,' Rickhuss wrote. 'We have had enough, and we will not accept you kicking the can down the road so that the businesses can limp on to nowhere.' Employees at the Rotherham and Stocksbridge sites who spoke to the Guardian said the mental health of workers and their families had been damaged by the long-running uncertainty over the future of the plant. Uncertainty across the group over the past nine months had prompted many workers to leave.
