Hundreds of skilled contractors in Scotland’s oil and gas sector face imminent unemployment, with Unite the union warning of an ‘avalanche’ of job losses at the Grangemouth refinery and Mossmorran petrochemical plant.
The latest wave of redundancies is raising alarm across the industry and intensifying calls for urgent government intervention and a credible transition plan for affected workers.
At Grangemouth, over 140 jobs with contractor Altrad, which provides operational support to the Petroineos refinery, are set to go by the end of June.
These workers deliver critical services such as access, thermal insulation, and protective coatings. Altrad’s workforce at the refinery has previously peaked at 300 during periods of heightened activity.
The situation is equally troubling at Mossmorran, where Altrad has announced at least 98 redundancies, citing a downturn in work and cost-cutting measures imposed by ExxonMobil. Further losses are unfolding as Bilfinger issues 10 redundancy notices and Kaefer cuts 55 jobs at the site.
Wider Industry Impact
The threat of job losses extends beyond these two sites. Unite has highlighted that around 200 jobs are at immediate risk on the Gryphon floating production storage and offloading (FPSO) vessel, following TotalEnergies’ decision to accelerate decommissioning plans.
A recent report by Robert Gordon University (RGU) underscores the scale of the challenge, warning that the UK oil and gas workforce could shrink by 400 jobs every fortnight for the next five years.
The sector has already seen a reduction of approximately 5,000 jobs between 2023 and 2024, dropping from 120,000 to 115,000 workers.
Unite general secretary Sharon Graham criticised both the UK and Scottish governments, stating: “There is an avalanche of redundancies taking place across Scotland’s oil and gas industry. These job losses highlight what Unite has been saying about the unfolding jobs crisis.
“The reality is that the UK and Scottish governments are failing to protect thousands of jobs. Government policy is also accelerating these huge losses without any credible jobs plan in place.”
Derek Thomson, Unite’s Scottish secretary, added: “The historic end of oil refining at Grangemouth is now causing the widely predicted domino effect with hundreds of jobs being lost in the supply chain.
“Mossmorran contractor jobs are also at risk which will add to the thousands of jobs lost, and the thousands more to come on the horizon.”
Transition Concerns and Future Opportunities
The RGU report also highlights that the capacity of the offshore renewables sector to absorb displaced oil and gas workers is currently limited. While the renewables sector has grown by about 5,000 jobs in 2024, this is not enough to offset the losses in oil and gas.
Unite argues that new energy projects, such as converting the Grangemouth refinery to produce Sustainable Aviation Fuel (SAF), could be fast-tracked to create alternative employment.
However, most proposed projects are not scheduled to start until years after the refinery’s closure, leaving a significant gap for affected workers.
The economic contribution of the Grangemouth refinery is substantial, with a PWC assessment valuing it at £403.6 million per year and supporting nearly 3,000 jobs.
The loss of these positions is expected to have a ripple effect across local communities and the wider Scottish economy.
With another 500 oil and gas jobs reportedly at risk and union fears of further large-scale redundancies, the call for a robust, actionable transition plan has never been more urgent.
Industry voices and trade unions are united in their demand for immediate government action to safeguard skilled jobs and ensure a just transition for Scotland’s energy workforce.
