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ISTC General Secretary Michael Leahy
"Corus have had scant regard for their employees"
 real 28k

Thursday, 19 April, 2001, 17:21 GMT 18:21 UK
Steel giant rescue bid fails
steelworker
A total of 6,000 steel jobs are threatened around the UK
Steel workers are to balloted on industrial action after Corus rejected a last-ditch attempt to save 1,300 jobs at its giant plant in Llanwern, south Wales.

Following talks with union officials at the plant on Thursday, Corus Executive Director Tony Pedder was accused of "industrial sabotage" after he said the proposals were "not a viable alternative because of long term change in the UK marketplace".

Llanwern steelworks near Newport, south Wales
More than 1,300 jobs are under threat at Llanwern

"This systematic sabotage is disgraceful and hypocritical..." said Iron and Steel Trades Confederation (ISTC) General Secretary Michael Leahy.

"Regretfully we must conclude that Corus never had any intention of working with us to save plants and jobs."

The union had suggested maintaining steel production at a million tons a year, opposing Corus's plan to completely end steel production at the plant.

Mr Pedder has already rejected similar union proposals at Shotton on Deeside, north Wales, and at Ebbw Vale and Bryngwyn in south Wales.

And earlier this week, a bid to save hundreds of jobs at a plant on Teesside was thrown out.

Glenys Kinnock MEP said: "This news again reveals the levels of callousness and insensitivity which Corus are capable of showing to a loyal and steadfast workforce.

"I will be working in Brussels with the European Commission to ensure that the maximum funding is made available to address the needs of all of those affected by closures."

The decision by the Anglo-Dutch company to end crude steel production at the Llanwern site near Newport will mean a huge down-sizing of the giant plant.


Regretfully we must conclude that Corus never had any intention of working with us to save plants and jobs

ISTC General Secretary Michael Leahy

While the unions have conceded that production does have to be reduced, they have also come up with a rescue package aimed at preserving all the jobs under threat.

Corus announced in February that it planned to streamline operations, axeing more than 6,000 jobs across the UK - with 3,500 of them in Wales.

Mr Pedder has just completed a tour of Welsh steel towns delivering the same grim and uncompromising message to his workers.

At Shotton in Flintshire, he told unions that one of the plants production lines had to close.

They had been arguing that the resulting job losses can and should be avoided.

Buy-out rejected

Hours later he was in south Wales, telling workers at the Bryngwyn works in Gorseinon near Swansea that their plant was to close altogether.

The small and specialised works has a record of making profits for Corus, but union offers to buy it have been rejected.

Unions and management are due to meet again at national level later this month, but industry experts say that the chances of a rethink by Corus seem as remote as ever.

In March, the first set of results since British Steel and Hoogovens merged to form Corus reported an operating loss of �1.152bn for the 15 months to December - around �100m higher than forecast.

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See also:

04 Apr 01 | Business
Corus pays millions to ex-bosses
29 Mar 01 | Wales
Corus talks move to Europe
15 Mar 01 | Business
Corus reports �1.15bn loss
14 Mar 01 | Wales
MPs accuse Corus bosses
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