News: Corus announces further restructuring for Rotherham
Steelmaker Corus has announced further job losses to those announced in January 2009.
The measures have become necessary because of the worldwide economic downturn and, in particular, the decline in steel demand in Europe and America.
It is thought around 400 are at risk in Rotherham, added to the 713 announced in January.
The consultation process identifies 2,045 jobs as being at risk. Some 1,500 of these are in the company's production facilities: about 800 at the engineering steels sites, mainly Rotherham and Stocksbridge; about 370 in Corus Tubes in the UK and the Netherlands, and about 375 at downstream rolling and finishing plants in Teesside and Scotland. The company is also opening consultations on 500 white-collar jobs throughout the Corus Long Products division, the majority at Scunthorpe.
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. We have to achieve long-term, sustainable competitiveness in a global and over-supplied steel market and are determined to do so by focusing on the quality of the products and services we offer our customers."
The company said it will make every effort to ensure as many of the job losses as possible are voluntary, though the potential for compulsory redundancies could not be ruled out. The company will at the same time seek to retain critical skills.
The company said that redundancy packages and outplacement support services will be available to those leaving the company. There will be full consultations with employees and their representatives throughout the process.
Unite's national officer, John Rowse said: "Whilst the circumstances 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. Unless there is urgent support from the UK government, British manufacturing will come out of recession hamstrung and unable to compete in the world economy."
Rotherham MP Denis MacShane said: "This is a body blow to Rotherham. I am concerned that Tata is not taking the long view. Although I welcome the fact there are no permanent closures of steel operations in Rotherham there are permanent job losses which will devastate families and the community.
"Last week I met with Lord Mandelson together with John Healey MP and Angela Smith MP. Mandelson was accompanied by all his ministers and top officials dealing with steel.
"I urged then and I repeat today that the Government must give as much support to steel as it has to banking or the car industry."
Business Minister Pat McFadden said: "I met with Corus CEO Kirby Adams last week to discuss the pressures the company is facing as demand has failed to pick up with company projections. Lord Mandelson has also written to Corus to offer up to £5m of training support to secure jobs across Corus sites.
"During discussions with Corus they have said the critical measures the Government can take are continued fiscal stimulus to support demand, particularly in construction and automotive. That is exactly what we are doing through Government capital expenditure in construction, measures to assist automotive companies and the car scrappage scheme to boost demands for new vehicles.
"Corus remains a substantial steel business, employing more than 20,000 in the UK and with capacity to produce over 13 million tonnes of steel per year. It remains important to many regions and communities in the UK."
Tom Riordan, Chief Executive of Yorkshire Forward adds: "This news is a real blow for the region and our thoughts are with all the individuals and families affected by this news, but I want to assure them that we are ready to provide support to those who need it.
"Following the first restructuring announcements made by Corus in January, a resource centre was established by Yorkshire Forward and its partners at the Rotherham site to provide careers and training advice to those affected. This service has already been accessed by over 300 staff and will now be extended to the Scunthorpe and Stocksbridge sites.
"Yorkshire Forward has also contributed £1.5m to the £5m offer being made by Government to retain jobs in the region."
The measures have become necessary because of the worldwide economic downturn and, in particular, the decline in steel demand in Europe and America.
It is thought around 400 are at risk in Rotherham, added to the 713 announced in January.
The consultation process identifies 2,045 jobs as being at risk. Some 1,500 of these are in the company's production facilities: about 800 at the engineering steels sites, mainly Rotherham and Stocksbridge; about 370 in Corus Tubes in the UK and the Netherlands, and about 375 at downstream rolling and finishing plants in Teesside and Scotland. The company is also opening consultations on 500 white-collar jobs throughout the Corus Long Products division, the majority at Scunthorpe.
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. We have to achieve long-term, sustainable competitiveness in a global and over-supplied steel market and are determined to do so by focusing on the quality of the products and services we offer our customers."
The company said it will make every effort to ensure as many of the job losses as possible are voluntary, though the potential for compulsory redundancies could not be ruled out. The company will at the same time seek to retain critical skills.
The company said that redundancy packages and outplacement support services will be available to those leaving the company. There will be full consultations with employees and their representatives throughout the process.
Unite's national officer, John Rowse said: "Whilst the circumstances 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. Unless there is urgent support from the UK government, British manufacturing will come out of recession hamstrung and unable to compete in the world economy."
Rotherham MP Denis MacShane said: "This is a body blow to Rotherham. I am concerned that Tata is not taking the long view. Although I welcome the fact there are no permanent closures of steel operations in Rotherham there are permanent job losses which will devastate families and the community.
"Last week I met with Lord Mandelson together with John Healey MP and Angela Smith MP. Mandelson was accompanied by all his ministers and top officials dealing with steel.
"I urged then and I repeat today that the Government must give as much support to steel as it has to banking or the car industry."
Business Minister Pat McFadden said: "I met with Corus CEO Kirby Adams last week to discuss the pressures the company is facing as demand has failed to pick up with company projections. Lord Mandelson has also written to Corus to offer up to £5m of training support to secure jobs across Corus sites.
"During discussions with Corus they have said the critical measures the Government can take are continued fiscal stimulus to support demand, particularly in construction and automotive. That is exactly what we are doing through Government capital expenditure in construction, measures to assist automotive companies and the car scrappage scheme to boost demands for new vehicles.
"Corus remains a substantial steel business, employing more than 20,000 in the UK and with capacity to produce over 13 million tonnes of steel per year. It remains important to many regions and communities in the UK."
Tom Riordan, Chief Executive of Yorkshire Forward adds: "This news is a real blow for the region and our thoughts are with all the individuals and families affected by this news, but I want to assure them that we are ready to provide support to those who need it.
"Following the first restructuring announcements made by Corus in January, a resource centre was established by Yorkshire Forward and its partners at the Rotherham site to provide careers and training advice to those affected. This service has already been accessed by over 300 staff and will now be extended to the Scunthorpe and Stocksbridge sites.
"Yorkshire Forward has also contributed £1.5m to the £5m offer being made by Government to retain jobs in the region."
Corus website
RotherhamImages: corusgroup.com
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