Corus employees have rejected a proposed pay cut from the company.

Corus employees belonging to unions Community, Unite, and GMB, have rejected proposals from the steel manufacturer regarding potential pay cuts of 10%, which the company has proposed as a means of avoiding redundancies.

The cuts would affect the pay of around 25,000 employees, and the proposals follow the news that Corus Tubes – the business unit of Corus that manufactures steel tubes – is to reduce its headcount by 146 – 56 at its Corby plant, 49 at Hartlepool and 41 in the Netherlands.

Global demand for steel has decreased steadily this year. According to the World Steel Association, global crude steel production was 100.5 million metric tonnes in October – 12.4% lower than the same month last year and 6.9% below September 2008 (figures reported in November 2008).

A joint union statement confirmed that discussions between Corus and the trade unions representing its staff are ongoing: “The Unions at Corus have been holding ongoing discussions with a view to protecting the interest of members during the economic downturn, which is having a significant impact on the demand for steel.

“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.  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.” 

Corus is the second largest steel producer in Europe with annual revenues of more than £12 billion and crude steel production of 20 million tonnes.