Corus union denies workers taking pay cut

11 December 2008

Workers at Corus Plc, Europe's second-largest steel company, are reported to have voluntarily accepted a 10-per cent pay cut for six months to try and save the Llanwern, Newport factory in south Wales from closure, although a union spokesman has denied it.

According to the Financial Times, three unions representing Corus's 25,000 steelworkers had discussed the idea of voluntarily opting for the pay cut after having earlier agreed to lower overtime and bonuses.

A spokesman for the main steelworkers' union said that the unions were in talks with the management of Corus to discuss ways to cope with the current economic situation but denied that workers had agreed to a voluntary pay cut as reported in the media. As these discussions were ongoing, it would be premature to make any speculations on the outcome, he said.

The spokesman added that the meeting in London today will be attended by over 100 delegates, representing the Corus workforce and will take the discussion forward and nothing was finalized regarding the pay cut although it was raised.

Last month Corus had announced 400 job cuts to align its production with a demand slowdown in Europe, caused by the global economic downturn, in its distribution and building systems division in its units at Shotton, Wolverhampton, South Wales and Leeds. Corus employs 2,400 people at 36 sites in Britain and Ireland. (See: Corus raises production cuts to 30 per cent; axes 400 jobs) 

An agreement signed between the management of Corus and its unions on a "no job cuts" expires this month and reports suggest that the company is asking for more concessions from the unions.