Corus unions concede 10% pay cut talks in progress

What on earth are the steel unions playing at? This morning they confirm that they are talking to Corus, the UK steel producer, about a 10% wage cut for its 25,000 employees yet yesterday the self-same organisation tartly maintained that reports of such a plan were “utter bollocks”.

There are three unions in the Corus battle zone: Community, Unite and GMB. Today they are all singing to a new tune, namely that they did indeed discuss a range of options, including a possible pay cut.

The Financial Times, quickly onto the story from day one, today reports: “A joint statement from the three unions said that they were having ongoing discussions with management to find ways to protect jobs during the economic downturn which was having a significant impact on the demand for steel.”

The FT quotes the unions as so far rejecting the push for a 10% pay snip.

They want to see the colour of Corus’s money first – namely just what the steel producer’s intentions are for 2009.

In the absence of any reassurances in that direction the unions “have made it clear to the company that the current national agreement will remain in place” and what’s needed next is a look at a viable plan for Corus’s way through the downturn, one which the unions can agree to.

Corus was swept up by the globalisation of the steel industry last year when India’s Tata conglomerate snapped it up.

It now aims to strip out £350m of costs in the UK and Holland where production is falling by 30%.

As part of this process, Corus announced last month that 400 jobs were on the line and blast furnaces at Scunthorpe and Port Talbot would close in March.

Yesterday’s most colourful language came from a spokesman for the GMB. He told the Guardian that reports that workers have offered to take a 10% pay cut in order to safeguard jobs were "utter bollocks".