Corus workers’ bonus

Nov 4 2009 by Sue Scott, Evening Gazette

THOUSANDS of Teesside steelworkers stood down the threat of industrial action today as Corus agreed to pay outstanding bonuses before Christmas.

In a surprise U-turn, the steel giant said that an improving financial position meant it could now afford to pay the money into November packets. Previously, it said it would withhold 2009 bonuses until next year - a decision described by one Teesside union official as “dishonourable”.

Corus operates a complex bonus structure, pegged to pay, but the bonuses covering the period from April to September are thought to be worth several hundred pounds to every employee.

Geoff Waterfield, chairman of the Multi Union Committee for Corus’ Long Products division, welcomed the decision as a victory for staff who had continued to meet production targets as the company fought to get back into the black. He said Corus had buckled under pressure.

“As far as we were concerned it was an illegal decision and we were putting a case together with solicitors in London to prove it. Management have had a reality check and realised that if they did not pay the bonuses all the goodwill from the workforce would go out of the window.”

He said recent revelations that parent group Tata Steel would pay generous bonuses to steelworkers in India had added to bitterness on the shop floor. “They were going into work, delivering what was asked of them. We were delivering the tonnage. It was a case of ‘what more do they want’?”

The Community union had begun balloting for industrial action at individual plants after payments were stopped. Locally, Corus Tubes at Hartlepool and Teesside Cast Products at Redcar, which together employ more than 2,500 staff, had both been warned that staff could vote to take action.

Community national officer Roy Rickhuss said: ‘‘Community’s campaign has won a double- bonus payday which will provide at least some comfort for Corus employees as we head towards Christmas and we’re delighted Corus has taken the right decision to pay our members their dues.’’

A Corus spokeswoman said the decision was reached partly because the company expected to achieve its financial targets, despite trading conditions remaining extremely challenging, although it looked forward to “positive discussions with the trade unions about future bonus structures that will reflect the overall company position”.

Meanwhile, unions have reopened negotiations with management over proposed changes to company pensions. In September, Corus reversed plans to exclude new employees from joining its final salary scheme.

According to reports today, Tata expects Corus to be back to full production capacity before March. At an industry conference the company said Europe's second-largest steelmaker had reached 80% capacity in October, despite earlier predictions that it would take years to rebuild production.