Memorandum submitted by the Amalgamated
Engineering and Electrical Union
1. The effect of
adverse trading conditions on Corus and the UK economy
Manufacturing is at the heart of creating a
strong and stable economy. It accounts for around two-thirds of
UK exports. The metals industry, a vital force within manufacturing,
has been taking a pounding on prices and margins. It is now cheaper
to source from Europe and an increasing number of companies are
importing materials and components. If this trend is not checked
there are serious implications for the future of steel in the
UK.
The AEEU is not prepared to stand by and watch
the demise of this industry and has been lobbying government for
a summit meeting to discuss the problems—which include the
strength of sterling, high transportation costs, membership of
the single currency and the energy tax. A meeting with the DfEE,
the employers and the unions will be held on 23 November 2000.
2. The AEEU is concerned that Corus will move
production overseas
Earlier this year the unions were instrumental
in winning a £120 million five-year Railtrack contract for
the Workington plant. The company subsequently switched production
from Workington to its recently acquired subsidiary in France,
Sogerail, resulting in job losses at Workington. Corus is a multi-national
company and this decision to switch production to Europe could
have serious implications for other UK plants. Corus is continuing
with its programme of overseas mergers and acquisitions while
announcing further capacity cuts in Wales (October 2000).
3. Early and constructive discussions on redundancies
or closures
At present Corus gives the unions up to 48 hours'
notice of redundancies or closures. The purchasing power of steelworkers
is vital to local businesses and communities. For a long time,
the AEEU has been seeking early consultation with the company
so that alternative options can be explored and the social and
industrial aspects of these decisions taken into account. Through
its partnership approach the AEEU is committed to the success
of British industry and recognises that productivity depends on
flexible attitudes to changing and improving skills. The Union
has been working, and will continue to work, with the company
in pursuit of manufacturing excellence.
4. Future investment in Corus's UK plants
Continued investment in UK plants is vital if
Corus is to continue steel production in the UK. The medium and
long-term future of the industry could be jeopardised unless the
necessary investment is forthcoming. The AEEU recognises that
for its members to improve their standard of living the companies
for which they work must be economically successful and would
welcome an opportunity to participate in discussions on the long-term
future of Corus in the UK. The company's current strategy is difficult
to understand in that it is having a demoralising effect on the
workforce and on its customer base.
YEAR 2000—CORUS
JOB LOSSES
| 4 February | Corus Rail, Workington—11 job losses
|
| 21 July | Strip Products—total job losses 850
—400 out of a total workforce of 3,500
Port Talbot
|
| | Llanwern
—450 out of total workforce of 3,000
|
| | Corus Colours—total job losses 150
Shotton, Tafarnaubach, Bryngwyn, Pontardulais, Birmingham
|
| | Corus Packaging Plus
—total job losses, 1,300
Ebbw Vale and Trostre—300/1980 (mostly Ebbw Vale)
|
| 14 July | Corus Construction & Industrial—total job losses 1,214
|
| | Scunthorpe
—677 out of a total workforce of 4,400
|
| | Teesside Works—526 out of a total workforce of 3,550
|
| | Dalzell
—11 out of a total workforce of 350.
|
| | Corus Cold Drawn Tubes, West Midlands—total job losses 60
|
| | Total workforce—198
|
| 16 June | Corus Research Development & Technology—total job losses 230
|
| | Three existing centres, with a total workforce of 1,280 (including 380 at Ijmuiden), to be closed and a new Technology Centre established with approximately 450 employees.
|
| | Teesside Technology Centre
—total workforce of 235
|
| | Swinden Technology Centre, Rotherham—total workforce of 365
|
| | Welsh Technology Centre, Port Talbot
—
total workforce of Welsh Technology Centre, Port Talbot—total workforce of 200
|
| | Corus Engineering Steels—Rotherham and Stocksbridge—total job losses 1,200
|
| | Tinsely Park—to be closed by December 2000
|
| | Metal Recycling Business—to be sold by December 2000
|
| | Stocksbridge—reduction in manning
|
| 11 October | Corus—total 210 job losses
Port Talbot
—100
Lackenby, Teesside—65
Shotton
—45
|
| 1 November 2000
|
|
