Union denies Corus pay cut deal
UNION leaders representing thousands of steelworkers at Corus have denied they have agreed to a 10 per cent pay cut to save jobs.
It had been reported the three unions representing Corus workers had discussed the option of cutting pay by 10 per cent for six months to stave off job losses.
But a Community Union spokesman said: "Community Union has recently met with Corus management to discuss a response to the current economic situation.
"These negotiations are on-going and it would be premature to speculate on the outcome. Nothing has been agreed at this time.
"Closing Llanwern has not been part of the discussions.
"Community Union's priority is to help our members through this crisis and avoid the need for extended lay-offs.
"Union representatives will be gathering in London today to discuss these ongoing issues."
Corus employs almost 3,000 in Port Talbot and 400 in Trostre.
It was announced in November production was being cut by 30 per cent at Port Talbot with some blast furnaces being temporarily shut down.
With bosses pushing for more cost reductions the long-term future of the Llanwern site in Newport was cast into doubt this week by reports in the Financial Times, which also suggested workers were prepared to take a pay cut.
The Newport plant is one of the last remaining steel factories in the UK and employs around 1,000 people.
Corus also operates production plants at Scunthorpe in Lincolnshire and Rotherham in South Yorkshire.
Owned by Indian industrial giant Tata Group, last month it cut 400 posts from its distribution business.
4 Comments
by Les, Swansea
Thursday, December 11 2008, 11:11PM
“I agree with Martin Rees, Port talbot. The writing is on the wall. Things are looking seriously grim for manufacturing in the UK”
by ANON, port talbot
Thursday, December 11 2008, 8:08PM
“If this is agreed all staff motivation will be destroyed..the tension in port talbot at the moment is awful! people are very concerned about their future but xmas is taking peoples mind off it. january is going to tell a different story though...nothing to look forward to other than the possibility of job losses and financial turmoil! this is just the beginning...the recession has not bitten yet! please will someone do something constructive as this useless government are just putting this country in to debt...cutting the VAT by 2.5%...has anyone actually noticed the difference other than the big spenders and the government (loss of huge income)? bad move!!!”
by anon, Swansea
Thursday, December 11 2008, 1:15PM
“Moral is already at an all time low and now they want the staff to take a 10% cut, lets hope if it does happen that its across the board and not just the people on the shop floor.”
by martin rees, port talbot
Thursday, December 11 2008, 12:49PM
“i personally think the writing is now on the wall not for the steel industry in South Wales but probably most plants in the UK.Now that the steel markets are having a big down turn in India and China it does not take much logic to realize what is happening could be catastrophic,Port Talbot and South Wales as the old seventies rock band the Neutrons an offshoot of the old Man band recorded a track then called doom city.”