STEELWORKERS could find themselves laid off on half-pay if the economic situation worsens.

The blow came on the same day as Tata, Corus' owners and owners of the troubled Jaguar Land-Rover group, announced it had signed a deal to sponsor Formula 1 team Ferrari.

Yesterday it was revealed Jaguar Land-Rover had asked the Government to consider state aid to help the car manufacturer.

Scunthorpe's main steel union Community has already distanced itself from the shift changes at the Corus works, claiming management had breached national agreements on some of the issues.

The changes would see working in most of the non-steel-making areas on the 2,000-acre site cease from 6am Saturday until 6am Monday, from January until at least March 2009.

Works director Sean Lyons has told the 4,500 employees: "This means that some employees who receive a shift premium for working anti-social hours will receive less of a shift premium."

In a newsletter to workers this week he said: "In certain areas it may also be necessary to invoke the terms of the guaranteed working week, which means the possibility of employees being laid off at 50 per cent of their normal earnings if our order books dictate we have sufficient shifts of zero activity."

Community national general secretary Michael Leahy confirmed the union was in 'ongoing' discussions with Corus at a national lever regarding potential lay-offs on 50 per cent of their earnings.

"We are trying to find a solution which does not bring undue financial hardship for our members in the short to medium term and ensures a long-term future for steel in Scunthorpe," he said.

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