It is reported that steel firm Corus is in talks with unions in a bid to cut costs and avoid making compulsory redundancies. It may be noted that the company, which employs 900 people in Corby, made 56 workers redundant and imposed a short working week at the start of the year.

Now it is in further talks with the unions which will lead to a May 2009 ballot of members over cost cutting proposals. Neither the company nor the unions would reveal what was being discussed, but staff has voiced concerns they may include pay cuts of up to 10%.

One employee, who did not want to be named, said that "It looks increasingly obvious that all Corus employees will be asked to vote on wage cuts early in May. Figures of 10% have been talked about in work, but no firm figures are coming out. Also talked about was the elimination of the monthly bonus and quarterly bonus schemes which contribute anything from GBP 300 to GBP 800 or more per quarter to our gross income. The Corby site has made losses before and survived, but no one has ever seen things as serious as this."

A Corus spokesman said that "I can confirm our management team is in negotiations with the unions to find ways of reducing our costs on site. Until these negotiations are concluded, we cannot speculate on the outcome. We are committed to working with our staff to reduce our costs to ensure a viable tube making business."

A spokesman for the Community Union, which represents the majority of Corus workers, said that negotiations were being held locally to give members the final say in accepting a deal for their workplace.

Corus Corby refused to comment on rumors that last quarter it made GBP 15 million losses and is currently losing GBP 2 million a month. Corby Council has been supporting the company by using Corus steel in construction projects. It has also has pledged to work with the company and trade unions to maximize the competitiveness of Corus locally and safeguard jobs.

(Sourced from www.northantset.co.uk)