Steel firm seeks to play down jobs fears

CORUS is playing down fears that jobs could be lost at its Port Talbot plant next month if there is no Government bailout of its sister company Jaguar Land Rover.

Tata, the Indian conglomerate which owns both companies, is reportedly planning to make thousands of UK workers redundant unless it gets financial backing from the Government.

Amid a sharp downturn in the car industry, it is feared job cuts could be made imminently at Jaguar Land Rover.

But Corus spokesman Tim Rutter said: "This does not change things in South Wales. The fact is still that demand and volume is down.

"I think the general feeling is that these reports might have an impact on Jaguar Land Rover rather than Corus."

The steel giant is also reported to be in talks with the Government about temporarily laying off staff.

It has been claimed Corus wants the Government to pay the majority of laid-off workers' salaries, to avoid making permanent redundancies.

But managers at the Port Talbot plant denied decisions about the workforce were on the agenda.

Mr Rutter said: "Any discussions with the Government are being held to support the steel industry.

"I'm sure the Government is keen to discuss plans for the workforce, but that issue is not particularly on the agenda. The future of the workforce depends on the state of the market."

Meanwhile, the Community union has said it is braced for "significant job cuts" at Corus in the New Year.

But Mr Rutter added: "The fact is that negotiations with us and the Assembly are ongoing and talks between Corus and Westminster are ongoing. I don't think conversations with the Government will increase market demand.

"We are not sitting here waiting for Government talks, we are waiting for the economy to improve. What the new year, brings nobody knows."

Corus employs almost 3,000 people at its Port Talbot site.

Earlier this year, it announced it was slashing production by 30 per cent and temporarily shutting down one of the blast furnaces.

Steelworker and former mayor of Neath Port Talbot Tony Taylor said: "People are anxious, there is no doubt about that, but there are no short terms plans for redundancies in Port Talbot.

"Obviously, one of the furnaces has been put out of operation for three months, but we are looking at this as an opportunity to retrain so when the upturn comes, we are ready for it. There is anger here, but there is also optimism.

"I use the analogy of a surfer — if he isn't on his feet riding the wave, he's on his belly paddling waiting for the next wave to come."