A total of 125 jobs are to be lost at the Lindsey oil refinery, following the collapse of owner Prax Group in June.
Searches for a buyer have been underway but a leading union has criticised the move as “making a mockery of government promises” and said the redundancies are the responsibility of those in power.
It has been reported 255 employees will remain at the Lindsey site, out of 420 staff who are directly employed and 500 contract workers.
Prax appointed administrators over the summer and energy minister Michael Shanks at the time called for the “wealthy owner” to “put his hands in his pockets and deliver proper compensation for the workers,” insisting he could not merely “wash his hands” of employee obligations.
Speaking on the announcement of today’s job losses, Mr Shanks said potential bids for the refinery’s future were being assessed and that the decision over redundancies had been taken to give employees “as much notice as possible”.
“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,” he added.
“Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery owners.”
However, Unite general secretary Sharon Graham insisted that fault lay with the government.
“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,” she said.
“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.”
The union also claim that insolvency firm FTI’s “preferred bidder” wants to “mothball the site and use it as a storage terminal for oil tankers” which would, it says, harm both jobs and the regional economy.
