VIDEO: Corus boss explains "difficult" cuts
SCUNTHORPE Corus steelworks director Sean Lyons said talks with trade unions will begin today over 366 job losses which will take effect at the end of October.
In a statement issued to the Scunthorpe Telegraph, Mr Lyons said: "We have been working hard with the trade unions to come up with a cost-saving solution that would have avoided job reductions and a proposal was put to Scunthorpe employees in May.
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Sean Lyons
"Unfortunately, union representatives decided that they were unable to ballot their members on the cost saving proposal.
"However, the business still needs to make significant savings to secure a viable future for the site so we have had to take this urgent action to align our employment costs to current and forecast demand for our products.
"Wherever possible we will seek to utilise volunteers, but we must ensure that the capability of plants or departments is not jeopardised."
Watch a video interview with Mr Lyons here. (The story continues below).
Discussions to explore alternative cost-saving options began earlier this year when a National Framework Agreement (NFA) was introduced, to allow trade unions and Corus managers to explore options at all UK operating sites.
This agreement aimed to find alternative ways to reduce employment costs without the need to axe jobs.
The company said the worsening and prolonged economic downturn continued to such an extent that the majority of sites were not able to make the required savings through the NFA, the statement said.
On June 25, Corus announced proposals to align its business to an anticipated prolonged downturn in global steel demand, leading to the loss of 2,045 jobs across the Long Products Division.
At the time of this announcement NFA discussions at Scunthorpe had still not reached closure but the company said it had since become clear that like the other UK operating sites, the NFA could not be implemented locally.
Mr Lyons added: "The next few months will be unsettling for everyone – our employees, their families and our local communities.
"But we have to take these difficult actions in order to ensure a future for steelmaking in Scunthorpe."
For updates, keep checking www.thisisscunthorpe.co.uk/corus throughout the day.
22 Comments
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by contractor, scunthorpe
Friday, July 10 2009, 7:46PM
“Fed up scunny get your facts right before spouting about contractors , there are a lot of highly qualified contractors on site because their permanent staff have not got the expertise to do the job and they are not wingers”
by fed up, scunny
Friday, July 10 2009, 10:05AM
“will all these working /not working contractors shut up whining about there plight,a contract is what it says meaning its not a permanent job,they signed on the dotted line and new the facts,if they wanted a permanent job then they should have applied for one,do they expect to be treated in same way as permanent folk who have been at the same firm for years,half of them were employed as contractors as they didnt have the brains to get a permant job so go whinging to your school teachersa about being laid of not on here”
by Dave, Scunthorpe
Thursday, July 09 2009, 9:45PM
“One thing that hasnt been mentioned, is the way they have treated contractors in a long slow drawn out process making them redundant in dribs and drabs, with no information of length of service left and very short notice time, a lot of skilled engineers are outraged and have told me outright they will never work on the plant again.”
by Habit, Scunthorpe
Thursday, July 09 2009, 9:19PM
“No Jim of course you have to cut back when in a recession, but you have to retain enough men to take advantage of the upturn when it comes as it surely will, corus are getting to the point of no return and limiting there options greatly as to what they can produce in the future.As for your attack on the unions you only have many of your freedoms because of people willing to put themselves out for others which whether you agree with their point of view or not is all these people are doing.”
by wiggy, scunny
Thursday, July 09 2009, 9:07PM
“Sean Lyons out”