Corus in talks with union over cost-cutting drive

Dec 11 2008 By Jez Davison, Evening Gazette

STEELMAKER Corus and union leaders are today locked in discussions to thrash out further cost-saving measures across the group.

The group is on a major efficiency drive following an economic downturn in the industry

Corus Teesside Cast Products (TCP) - which employs around 2,000 staff - recently announced plans to slow by 30% output at the plant’s only blast furnace, a move which will protect jobs locally. Now discussions are continuing to find new ways of streamlining the business by making additional savings.

Jon Bolton, Corus TCP’s managing director, said: "At national level there are ongoing discussions between management and unions to see how we can save costs given the extraordinary times that we face."

Unions said discussions were continuing but denied reports that they had agreed to a 10% pay cut to save jobs. Jimmy Skivington, a GMB union official, said: "The discussions are looking at all options to reduce costs. GMB members working at Corus have not agreed to any pay cut. But we continue with the talks with the company in the hope that together we can find a solution to the current difficulties, which are reflected throughout industry.

"A meeting in London today with over 100 delegates, representing the Corus workforce, will move the discussion forward."

Corus is attempting to reduce costs to combat a sharp downturn in the global steel market, which has taken a 30% hit due mainly to the collapse of the automotive and construction industries. A spokesman for Community, the main steelworkers’ union, added: "We have recently met with Corus management to discuss a response to the current economic situation. These negotiations are ongoing."