Union leaders said that a local company's pledge could save up to 450 jobs in Britain's city of steel. Scunthorpe's TATA Steel plant, which employs 4,000 people locally, warned in May 2011 that it was planning to shed up to 1,200 jobs at the site, alongside 300 others at nearby Teesside.
The India based steel giant, which announced a GBP 1.2 billion net profit for the year ending March, said the cuts were due to falling demand.
But TATA Steel, whose latest ad campaign launched, promises values stronger than steel, is a major employer in a region where there are six jobseekers for every vacancy. Yet the company told staff this week that it now hoped to save up to 450 of those jobs from the axe.
Mr Jon Bolton director at Long Products said that the restructuring was difficult, but they had interviewed employees alongside the unions and were making every effort to reduce its payroll through voluntary redundancy.
Mr Keith Hazelwood the GMB union's national steel officer said that TATA's announcement was a welcome relief. He added that the union had not yet had the opportunity to study the reasons for the change in plan, but it was very welcome news.
However the pledge depends on the company's cost cutting elsewhere on the site and 750 jobs will still have to go.
It is understood that around 500 employees have said they would be willing to accept voluntary redundancies, but union leaders refused to comment.
Steelworker union Community national officer Mr Roy Rickhuss said it was premature to talk numbers. He added that "Enquiries don't equate to acceptances. Our position is to maintain the line against compulsory redundancies and carry on with local negotiations."
Local construction magnate Mr John Clugston, who heads a council taskforce to manage the TATA fallout, said that it would be good news if the jobs could be saved. He said that "I sincerely hope the company and the unions come together to make the savings required, but it will take time."
North Lincolnshire council leader Ms Liz Redfern said that "Obviously I welcome the significant number of jobs at risk hopefully being saved. I am really pleased for them and especially for the families at this difficult time."
(Sourced from www.morningstaronline.co.uk)
