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Corus to cut 2,000 jobs

10:50am GMT, Friday, 26 June 2009

Unite is angry at further job cuts across Corus’ UK steel production sites. Unite is angry at further job cuts across Corus’ UK steel production sites.

British-based steel manufacturer Corus has announced restructuring plans, which will see the loss of over 2,000 jobs across its UK plants.

The latest statement follows news in January of a planned shake-up for the company. At the time, Corus said up to 3,500 jobs were at risk, and the latest round of job cuts is on top of those previously announced.

Corus is Europe’s second largest steel producer with annual revenues of around £12 million and a crude steel production of over 20 million tonnes. In 2007, Corus became a subsidiary of the world’s sixth largest steel producer, Tata Steel.

Following a consultation process, around 2,045 jobs have been identified as being at risk across a number of Corus’ sites. Around 800 are to go at the engineering steel sites in Rotherham and Stocksbridge; approximately 370 in Corus Tubes in the UK and at the company’s Netherlands site; 375 at the plants in Teesside and Scotland; and a further 500 throughout the Corus Long Products division, the majority of which are in Scunthorpe.

The company is blaming a decline in steel demand and the ongoing economic downturn for the reduction in labour.

Corus CEO, Kirby Adams, said: “We understand the difficulties these job losses are likely to cause our employees and their families. Any recovery in Europe appears to be some time off, so it is vital that we take this proportionate and responsible action now.”

Unite have reacted angrily to the news. National Officer, John Rowse, said: “We will be having urgent discussions with the company on this latest announcement but we cannot keep moving from crisis to crisis, it’s time for the government to step-up and act.

“Whilst the circumstance of this latest announcement is due to the impact of the global crisis, interim solutions have to be local to the UK. The situation for Corus and British manufacturing is too serious to stand idly by. Unite will be doing everything possible to support its members.”

Corus has said it will ensure as many of the jobs losses as possible are voluntary.

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