Supplementary memorandum submitted by
Corus PLC
When Corus met the Committee on 2 May, there
were a number of items that we agreed to follow up in written
form. This letter contains our response to those items.
1. (Q253) CONSULTATION
WITH EMPLOYEES'
REPRESENTATIVES
We agreed to offer a statement about consultation
on the counter-proposals from our employees' representatives to
the Company's plans for asset restructuring which were announced
on 1 February.
As explained at the time. Mr Pedder had held
meetings at each location and gave clear reasons for rejection
of alternative prosposals in oral exchanges.
Following our meeting with you, we met national
trade union representatives for a final meeting on these matters
on 3 May. We reaffirmed that we had followed the procedure agreed
between us and that Mr Pedder had carefully explained at each
location affected the reasons why the local counter-proposals
were not viable. The reasons varied by location, but the counter-proposals
could not be accepted either for market reasons, or because they
would have worsened our overall financial position. This meeting
with national officials marked the conclusion of discussions at
national level on our restructuring proposals. You will be aware
that, since then, local implementation agreements have been reached
at all locations.
2. (Q210) MEETINGS
WITH GOVERNMENT
The Committee heard that we had held a large
number of meetings at all levels of Government in London and in
Wales. By way of illustration, below is a selection of dates from
1 January 2000 up to the date of the 1 February announcement involving
Cabinet level meetings with senior company representatives:
Sir Brian Moffat—Chairman:
9 May 2000—Chancellor of the Exchequer
15 December 2000—Trade & Industry Secretary, Welsh Secretary
& First Minister for Wales
18 January 2001—Trade & Industry Secretary
1 February 2001—Trade & Industry Secretary
John Bryant—former Joint Chief Executive:
29 February 2000—Prime Minister
11 April 2000—Welsh Secretary
5 May 2000—Trade & Industry Secretary (together with
Fokko van Duyne, also former Joint Chief Executive)
13 June 2000—Welsh Secretary
14 June 2000—Trade & Industry Secretary
4 July 2000—Welsh Secretary & First Minister for Wales
31 July 2000—Trade & Industry Secretary
17 October 2000—Welsh Secretary
3. (Q 291) COST
OF REGULATION
Questions had been raised about the cost of
regulation. Rather than include lengthy documents already in the
public domain, we would draw your attention to written evidence
given by UK Steel Association to the Trade & Industry Select
Committee and published in their report on the UK Steel Industry
earlier this year.
4. (Q 311) CORUS
SHARE PRICE
On 1 February, this was 82p. Enclosed is a chart
showing the Corus share value against the FTSE 350 since the formation
of the company in October 1999.
5. (Q 402) TRAINING
FOR EMPLOYEES
AFFECTED BY
THE RESTRUCTURING
PROPOSALS
Corus has been in joint discussions with Government
(DTI & DfEE) plus trade unions to put together a joint bid
for funding by the European social fund of a retraining package
for redundant employees. This has been part of a series of discussions
with Government about support for employees affected by the restructuring
of the industry since the middle of 2000. Corus has agreed to
contribute a significant sum of money towards this package.
A number of meetings have been held and the
basis of a plan has been developed. This will need to go through
an application and approvals procedure, but Corus is confident
that this will offer useful support to those affected.
Corus also welcomes the announcement of a modified
form of ISERBS and has held meetings with DTI in order to clarify
procedures and eligibility criteria.
Ian Goldsmith
UK Public Affairs Manager
4 June 2001
| 
