Legal threat on Corus bonuses

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Thursday, October 22, 2009
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This is SouthWales

CORUS is facing legal action over its failure to pay cash bonuses to thousands of steelworkers.

Union leaders are preparing to go to an industrial tribunal, claiming the company is using the recession as an excuse to attack its workforce's terms and conditions.

Disgruntled workers in Port Talbot, part of Corus Strip Products UK, have not been paid any bonus.

They, along with colleagues at Trostre in Llanelli — who are in a different division and have received some but not all of their money — have been told their union will support them if they decide to ballot for industrial action.

Earlier this year workers were up in arms after being told payments worth upwards of £2,000 each had been scrapped.

That was followed in July by an apparent U-turn when Corus said the bonuses would be paid, but only if the company reached perfor- mance targets.

However, in a letter to Corus Strip Products workers, executive director Tor Farquhar said bonuses for the quarter just ended would not be paid.

"We remain committed to the payment of a lump sum bonus (LSB) but believe it is imperative that it is linked to the current priorities of the businesses and reflects out ability to pay," he said.

However, said Mr Farquhar, discussions had not progressed because of disagreements about the company's proposals for the British Steel Pension Scheme.

He added: "We are now in constructive discussions regarding the BSPS and hope that bonus discussions can recommence shortly.''

Community Roy Rickhuss confirmed a legal case would be brought before an employment tribunal.

"We are gathering evidence to enable our lawyers to build the strongest possible case to show Corus is in breach of procedure and custom and practice,'' he said.

Mr Rickhuss said Corus had tried to introduce the profit element into bonus payments before, but strong trade union opposition had stopped this each time.

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"Corus is trying the same thing again and using the recession to attack terms and conditions,'' he added.

Steel workers in Hartlepool are balloting for industrial action over non-payment of bonuses.

A Community union spokesman said workers in Port Talbot had not received their first-quarter bonus. Those at Trostre had, only to be told they would not have a second-quarter bonus.

"The tribunal action being taken relates to the non-payment of the first-quarter bonus,'' he added.

"However, workers at Trostre as well as Port Talbot are open to taking industrial action if they wish and the union will support them.'' Corus spokesman Robert Dangerfield said: "The negotiation process is underway and I think it will have a good outcome for all parties. That is the intention.''

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  • Profile image for This is SouthWales

    by JF, Swansea

    Friday, October 23 2009, 12:10PM

    “So basically all the staff at Corus want their cake and eat it. They were awarded a sustantial sum for re-training and improving their skills etc from the welsh assembly as their jobs were supposedly at risk. Now they expect the bonuses to be paid too. Are they taking the P**s out of the situation?? Extra funding to save your jobs and bonuses on top. Get a grip, count yourselvers lucky you still have jobs in the current climate. If you've put yourself in a situation where you are now relying on this "bonus" then its your own fault. Don't spend what you haven't got till its in your account. NO SYMPATHY, all were here is how hard done by you are. Getting boring now. Maybe Corus will change their minds and move everything up to Tyneside and leave these grabbing leaches to fend for themselves on the dole.”

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