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”
by jim, Hibaldstow
Thursday, July 09 2009, 8:26PM
“Most of the people on this board are unbelievably naive as far as business is concerned! When costs are out of kilter with turnover what do you expect a business to do???? Continue haemorrhaging money??? How would you run your business??? Profitably or unprofitably???
Comment from the unions:
"We keep hoping the job losses are ending and then another announcement comes along. We are disappointed an agreement could not be reached that would prevent job losses. Totally blinkered as was Scargill!
How inept are the unions - clueless if you ask me! Unions are an out-moded format which should have been buried along with UK coal!
Would any right-minded business person have these people running their companies??? No chance!”
by kevelan, scunny
Thursday, July 09 2009, 8:20PM
“To Sean Lyons,
Are you Ian McGregor in disguise?”
by GARY DAY, MESSINGHAM
Thursday, July 09 2009, 6:39PM
“It is interesting to read in this article that "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." Going off Leggy's figures of 863 announced since January and the 1000+ approx contractors since October it makes you wonder if the final 50+ (approx) will not also come from Scunthorpe. It looks like it is our workers who are paying the price for the policy change in regard to the Long Products Division alone. I agree with other voices it is about time now that our politicians demand to know what the long term mission statement is from Ta Ta in regard to Steel production at the Scunthorpe site. The constant job cut snipping would suggest that long term goals for the sites usage have been identified and the company know exactly what the future holds for those employed. If not, how can the owners be so sure that these permanent job cuts are necessary and these people will not be needed when production rises as the economy recovers, which if you believe the Labour Party MPs, has already started. I believe that the production of steel under Ta Ta has a very bleak future where Scunthorpe is concerned, I hope for the sake of those concerned I am proved to be wrong and I wish them all luck for the future.”
by Tin Horn, Bob
Thursday, July 09 2009, 6:11PM
“£60 odd Billion a year is wasted by this Labour-loony Stalin Brown Party on Quango non-jobs like the Health Protection agency, or the Passanger Focus Agency, or the Agricultural wages Board, or the Union Learning fund, or the Qualifications Curriculum and development Agency.Not forgetting Ofsted and the FSA which really know how to lick the cream of the lid. And they cant even protect a few Steel jobs. Nuts.”
by Oldie, RTB
Thursday, July 09 2009, 5:26PM
“Renationalise-say TaTa to capitalism.”