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Union's appeal over Corus cutback | Union's appeal over Corus cutback |
(about 3 hours later) | |
Union leaders have appealed for Corus not to make any "knee jerk reaction" after the steel giant announced plans for a 30% cut in production in Europe. | Union leaders have appealed for Corus not to make any "knee jerk reaction" after the steel giant announced plans for a 30% cut in production in Europe. |
Three blast furnaces, at Port Talbot and Scunthorpe in Britain, and one in the Netherlands, will shut temporarily. | Three blast furnaces, at Port Talbot and Scunthorpe in Britain, and one in the Netherlands, will shut temporarily. |
Officials of the Community union, which represents 3,000 workers in Port Talbot, say they want reassurances over jobs beyond the end of the year. | |
Corus blamed the general economic downturn for the production cut. | |
"We are hopeful that Corus will look to retain capacity to meet long-term demand rather than make a knee-jerk reaction to short-term trends," said Michael Leahy, general secretary of the Community union. | "We are hopeful that Corus will look to retain capacity to meet long-term demand rather than make a knee-jerk reaction to short-term trends," said Michael Leahy, general secretary of the Community union. |
Robert Edwards, regional director of Community, which represents 3,000 workers at Port Talbot, said there was hope that the company could overcome short-term difficulties. | Robert Edwards, regional director of Community, which represents 3,000 workers at Port Talbot, said there was hope that the company could overcome short-term difficulties. |
"Certainly this can't have come at a worse time in the run up to Christmas with people concerned about their finances and this means our members are walking a path of uncertainty," he said. | "Certainly this can't have come at a worse time in the run up to Christmas with people concerned about their finances and this means our members are walking a path of uncertainty," he said. |
'Lot of energy' | 'Lot of energy' |
The cut is greater than expected. Last month, Corus said it would cut production between October and December by a million tonnes of crude steel - about 20% of its output. | The cut is greater than expected. Last month, Corus said it would cut production between October and December by a million tonnes of crude steel - about 20% of its output. |
In a statement the firm said it had now decided to extend these production cuts beyond December. | In a statement the firm said it had now decided to extend these production cuts beyond December. |
Mr Edwards said: "At the moment we have a promise from Corus that there won't be any redundancies, this will run out at the end of December and they've said this [production cut] will go on into March, so we will have to talk with the company, both nationally and locally, about what that means for our members. | Mr Edwards said: "At the moment we have a promise from Corus that there won't be any redundancies, this will run out at the end of December and they've said this [production cut] will go on into March, so we will have to talk with the company, both nationally and locally, about what that means for our members. |
"There are things which they could consider in the meantime - a re-lining is due for one of the furnaces at Port Talbot, so maybe they should take advantage of this downturn until there is a change in the market." | "There are things which they could consider in the meantime - a re-lining is due for one of the furnaces at Port Talbot, so maybe they should take advantage of this downturn until there is a change in the market." |
One blast furnace at Scunthorpe, Port Talbot, and IJmuiden in the Netherlands, will be temporarily shut down, the firm said. | One blast furnace at Scunthorpe, Port Talbot, and IJmuiden in the Netherlands, will be temporarily shut down, the firm said. |
Mr Edwards said he could understand the company's approach in the temporary shutdowns of the furnaces. | Mr Edwards said he could understand the company's approach in the temporary shutdowns of the furnaces. |
"I'm an ex-blast furnaceman myself, blast furnaces take up a lot of energy, they gobble it up to be honest, and they do use a lot of coal so it makes sense." | "I'm an ex-blast furnaceman myself, blast furnaces take up a lot of energy, they gobble it up to be honest, and they do use a lot of coal so it makes sense." |
Corus chief executive, Philippe Varin, said Corus had to adapt "to the changing environment with maximum speed". | Corus chief executive, Philippe Varin, said Corus had to adapt "to the changing environment with maximum speed". |
The firm, which employs more than 24,000 workers in the UK, also announced 400 job losses in its distribution business, on 6 November. | The firm, which employs more than 24,000 workers in the UK, also announced 400 job losses in its distribution business, on 6 November. |
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