Workers at Corus will be balloted for industrial action after the steelmaker began mothballing a plant at Teesside with the loss of up to 1,600 jobs, unions announced.
Unions have accused the company, which is owned by the Indian firm Tata, of ignoring expressions of interest from potential buyers of the steelmaking plant – a charge denied by Corus management.
Terry Pye, Unite's national officer for the steel industry, claimed that Corus wanted to shut its steel works so it can turn over more of the site to boost the production of coke, which is more profitable.
He also said that Corus did not want to sell the steel works to prevent competition with the company's other plant at Port Talbot in Wales. Corus management insists it has "toured tirelessly around the globe" looking for an investor in the plant.
Workers will be balloted over potential industrial action to disrupt Corus's remaining operations at the site, which include a coke works and a port.
Lord Mandelson visited the plant yesterday amid faint hopes that a rescue bid for the plant could be mounted. The business secretary is still hopeful that a buyer can be found, although he is realistic that steelmaking is unlikely to resume on the same scale at Redcar. Any deal is unlikely to materialise soon.
Some 600 people will still be employed by Corus in other plants on the site.
Many families joined workers in a show of solidarity outside the plant, as about 300 people demonstrated their support. Cars tooted as they passed the rally, which was livened up with a brass band.
John Wakelin, 54, from South Bank, said: "Tomorrow morning I will feel like I have been to a wake." The Unite union convenor, who has worked at the plant for more than 25 years, added: "We have to make sure the mothballing is a success so we can come back on if a buyer comes in to take over."
Many felt let down by the government. One banner said: "'Teesside the infant Hercules': PM William Gladstone 1860. 'Where? Who cares?': PM Gordon Brown."
Some looked stunned that steelmaking was over, and women in the crowd wiped away tears and hugged.
Regional development agency One North East announced a support package to help redundant workers find new jobs.
Friday, February 19, 2010
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