Unions representing the 25,000 UK workforce of steelmaker Corus have rejected the firm's proposal that staff take a 10% pay cut. | Unions representing the 25,000 UK workforce of steelmaker Corus have rejected the firm's proposal that staff take a 10% pay cut. |
While the Community, Unite and GMB unions said talks would continue with Corus, they said they needed more details of the firm's plans for 2009. | While the Community, Unite and GMB unions said talks would continue with Corus, they said they needed more details of the firm's plans for 2009. |
With Corus saying it needs to cut costs due to falling steel sales, the impasse raises the fear of job losses. | With Corus saying it needs to cut costs due to falling steel sales, the impasse raises the fear of job losses. |
There are concerns that Corus' Llanwern facility in South Wales may close. | There are concerns that Corus' Llanwern facility in South Wales may close. |
This site near Newport employs 1,000. | This site near Newport employs 1,000. |
'Demanding information' | 'Demanding information' |
"The company's proposals for a 10% pay cut were one of a range of options which so far have been rejected by the unions," said Community, Unite and GMB in a joint statement. | "The company's proposals for a 10% pay cut were one of a range of options which so far have been rejected by the unions," said Community, Unite and GMB in a joint statement. |
"Before there is an agreement on the future of the 25,000 employees, the unions are demanding that Corus makes clear its intentions for 2009." | "Before there is an agreement on the future of the 25,000 employees, the unions are demanding that Corus makes clear its intentions for 2009." |
A Corus spokesman told the BBC that "talks were ongoing and everything is still on the table." | A Corus spokesman told the BBC that "talks were ongoing and everything is still on the table." |
Michael Leahy, general secretary of the Community union, told the BBC earlier in Thursday that Corus was committed to avoiding closures and job losses, if at all possible. | Michael Leahy, general secretary of the Community union, told the BBC earlier in Thursday that Corus was committed to avoiding closures and job losses, if at all possible. |
"We realise that there's been a global downturn in production of steel and people wanting steel - in fact we realise there's been over 40% reduction in the order books for steel in Corus UK and Europe-wide," he said. | "We realise that there's been a global downturn in production of steel and people wanting steel - in fact we realise there's been over 40% reduction in the order books for steel in Corus UK and Europe-wide," he said. |
State aid request | State aid request |
Both steel sales and prices have fallen sharply since the summer due to the deepening economic downturn. | Both steel sales and prices have fallen sharply since the summer due to the deepening economic downturn. |
Construction and carmaking, two steel-intensive industries, are among those to have suffered. | Construction and carmaking, two steel-intensive industries, are among those to have suffered. |
Earlier this month, Corus, the Anglo-Dutch subsidiary of Indian steel giant Tata, asked Gordon Brown for UK government aid. | Earlier this month, Corus, the Anglo-Dutch subsidiary of Indian steel giant Tata, asked Gordon Brown for UK government aid. |
The firm's head Philippe Varin said state help was needed to allow firms to avoid redundancies amid falling output. | The firm's head Philippe Varin said state help was needed to allow firms to avoid redundancies amid falling output. |
Corus axed 500 jobs from its UK workforce of 25,000 last month. | Corus axed 500 jobs from its UK workforce of 25,000 last month. |
The firm, which was bought by Tata Steel for $12bn (£8bn) in 2007, plans to reduce its European output by 30% by March. | The firm, which was bought by Tata Steel for $12bn (£8bn) in 2007, plans to reduce its European output by 30% by March. |
In addition to Llanwern, Corus also runs sites at locations including Port Talbot in South Wales, Scunthorpe in North Lincolnshire and Rotherham in South Yorkshire. | In addition to Llanwern, Corus also runs sites at locations including Port Talbot in South Wales, Scunthorpe in North Lincolnshire and Rotherham in South Yorkshire. |
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