Frustration grows as unions walk out
STEELWORKS unions have walked out of a meeting with steel giant Corus in a row over employment terms.
Community Union delegates left the meeting in Scunthorpe yesterday with management of Corus’ Long Production business. It was the first time in 17 years that failed talks had sparked a walkout and signalled the depth of frustration among national officers who have been working with management to reduce costs and cut shifts locally. Nationwide, it has negotiated to achieve 4,500 Corus cuts. The union said it was now on a “collision course” with management.
The Long Products business takes in steel works across the Tees Valley - including Redcar, Lackenby, Hartlepool and Skinningrove - which employ more than 3,000 staff. Industrial action now could be disastrous for the Teesside Cast Products plant, which has struggled to survive since the collapse of a deal in April and is now negotiating with a number of potential purchasers.
The Community Union said it was disgusted at the way the company was “seeking to use the recession as an opportunity to reduce employee terms and conditions and to close the pension scheme to new entrants”.
Roy Rickhuss, national officer for Community Union, said: “Delegates informed management that their behaviour was damaging the industrial relations within the company that may never recover and that the unions and management are now on a collision course.”
Community raised the threat of industrial action a week ago when Corus announced it was to close its pension scheme to new entrants. A Corus spokeswoman today confirmed a “routine meeting” had taken place with unions yesterday, but declined to comment further. However, there was better news for TCP yesterday as it emerged that Corus was to increase the price of long products on the back of strengthening world demand for steel. Corus said it would be increasing prices for sections by £25/tonne and for plate by £30-40/tonne. The price rise will apply to all newly booked UK deliveries from October 4.
TCP recently announced it had secured enough orders to keep the plant going until the end of October. Jon Bolton, managing director of TCP, said: “This general improvement in the market has helped us secure orders for October but we continue to review this on a month on month basis as the market is still fragile, also we still need to ensure we have volume as well as price.”
Martin Maley, Corus commercial director for Long Products, added that demand was being led by the US and Asia, while he believed destocking was “nearing its end in many product areas”.
Geoff Waterfield, chairman of the multi-union committee on Teesside - who was at the meeting - said: "It was important to show how strongly members feel about this situation."
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