Grangemouth refinery owner Ineos has abandoned a lawsuit against its workers' union over a case that saw production of around 70 per cent of Scotland's fuel grind to a halt.

The company threatened to sue the Unite union for libel in September after Scottish secretary Pat Rafferty described Grangemouth's workforce as labouring under a "culture of fear" culminating in a series of management disciplinary investigations against then convener Stevie Deans.

Ineos UK chairman Calum MacLean rejected the allegation as "untrue and defamatory" - less than a month before informing the workforce of plans to shut down the plant's entire petrochemicals arm and axe 800 jobs unless they agreed to drastic cuts to pay, pensions and conditions.