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Corus workers await news of jobs Fears over 1,100 Welsh steel jobs
(1 day later)
Steelworkers are waiting for news of possible redundancies at Corus which employs just under 8,000 in Wales. Up to 1,100 steelworkers are set to lose their jobs at Corus in Wales, with around half at Llanwern in Newport.
The steel giant is understood to be planning to cut about 3,500 staff from its worldwide workforce of 42,000. The hot strip mill at Llanwern is to be mothballed, affecting 528 jobs as part of 2,500 UK jobs being lost.
The Anglo-Dutch firm has sites in Port Talbot, Llanwern, Shotton, Blaenau Gwent, Carmarthenshire and Caerphilly. Core technical and engineering staff will be kept on so they can restart it when the economy picks up.
Unions say talks have been held with Corus and cuts across the firm's European operations are expected. Corus has declined to comment. Shotton, Flintshire, Ammanford in Carmarthenshire and Pontardulais near Swansea are among other plants affected, say Corus.
The Welsh Assembly Government said it was "extremely disappointed" at the announcement, saying the head count of jobs being lost in Wales could be as high as 1,100.
An initial breakdown from the company spokesman in south Wales gave 760 job losses, although it is understood there are another 330 unallocated redundancies in Wales.
CORUS JOB LOSSES IN WALES Four plants in south Wales affected by the announcement 528 jobs out of 1,400 jobs will go in Llanwern with the hot rolling mill being mothballed. Core technical and engineering staff will be kept on so they can restart it when the economy picks up.90 people will lose their jobs in Shotton, Flintshire, out of 1,000 workers, but 100 different jobs may be created with work moving from Ammanford and Tewkesbury73 jobs will be lost in Ammanford, Carmarthenshire with the plant closing52 people will lose their jobs in Pontarddulais, Swansea with the operation closing.17 jobs lost in Caerphilly out of about 100 at the Profiles plantSource: Corus Llanwern workers fear for futureCorus cut 2,500 jobs in UK Union's redeployment hopes
Derek Simpson, joint leader of Unite, said the union will not accept any compulsory redundancies, adding: "We understand that Corus do face difficulties but before this recession Corus had been making extremely healthy profits.
"Our members have supported Corus through good times and bad and now expect Corus to support them."
Corus said the initiative was "strategic and structural" in nature.
"Elements of the initiative comprise long-term plans that were already under consideration but which have been brought forward as a result of the slowdown," said a spokesman.
Like most other companies operating in the heavy industries sector, Corus has been hit hard by the economic downturn.Like most other companies operating in the heavy industries sector, Corus has been hit hard by the economic downturn.
The firm, which was taken over by the Indian company Tata in 2007, employs about 3,500 in Port Talbot, south Wales - one of its biggest plants. The firm, which was taken over by the Indian company Tata in 2007, also employs about 3,500 in Port Talbot, south Wales, with a review starting at the plant.
CORUS IN WALES AND STAFF NUMBERS Steelworks at Port Talbot, about 3,500Strip mills at Llanwern, Newport, about 1,400Tinplate works at Trostre, Llanelli, about 800Coating works at Tafarnaubach, Blaenau Gwent, about 50 and Shotton, Flintshire, about 1,000Profiles plant at Caerphilly, about 100Plant at Llandybie, Carmarthenshire about 100 Paul Flynn, MP for Newport West, said news of the mothballing at Llanwern was a "bitter blow".
It also employs about 1,400 at a processing plant at Llanwern near Newport where earlier in January 500 workers were told they would have temporary wage cuts due to a lack of work. At its peak, the plant employed 10,000, directly and indirectly.
A temporary shutdown at one of the blast furnaces at Port Talbot was also extended until at least April. Mr Flynn said: "The last thing we want to see is a short-term decision because of a temporary crisis and mothballing is a very severe blow to the hundreds of workers involved."
About 1,000 more jobs are at the Shotton works in Flintshire and about another 800 at the Trostre tinplate works in Llanelli where 290 threatened redundancies have been put permanently on hold. Although jobs are going at Shotton in Flintshire, the company said there should be a "net gain" with jobs created, with posts offered to staff in Ammanford and Tewkesbury first.
Union leaders have confirmed they have been in talks with the company and are expecting news of job cuts at the end of the week. Corus workers in south Wales give their reaction to news of planned job cuts
Matt Ball from the union Community said: "We have been in talks with Corus and are expecting details this week, they've not gone into numbers. A Welsh Assembly Government spokesman said: "The company's decision to reduce headcount by around 1,000 jobs in Wales is bound to have a significant negative impact, not only on the employees at Corus sites in Wales, but on the communities and the wider Welsh economy.
"We've not heard any numbers, we are expecting to here this week. The cuts are across all European operations. "The First Minister spoke to the company's senior management yesterday and today and has pledged that the Welsh assembly government will work with the UK government and trades union representatives to do everything possible to support the workforce and the communities affected by today's announcement."
Reassurances Deputy First Minister Ieuan Wyn Jones AM will make a statement on the assembly government's response on Tuesday.
"It's not a surprise, but we want to ensure there are no permanent cuts so that when the upsurge comes steelmakers are able to respond. Conservative economy spokesman David Melding AM said: "These are quality, highly skilled jobs - just the sort of jobs Wales needs if it is to recover quickly from the recession.
"We've had no sit down talks with the government, if anything we would want government money invested in the industry in training and up-skilling the workforce. "Every effort must be made to retain as many jobs as possible and retrain those who are made redundant as a result of today's announcement."
"When Tata took over Corus we were given reassurances they were in it for the long term. First Minister Rhodri Morgan says help will be provided for those workers losing their jobs
The unions' met Corus last Tuesday and this was not mentioned Keith Hazlewood, GMB Liberal Democrat economy spokeswoman Jenny Randerson AM added: "This is another dark day for Welsh workers who have already been left reeling from thousands of other job cuts over recent months.
"We've not seen anything to alter that opinion." "I hope this serves as a lesson to the Labour-Plaid government, who in the past have been busy congratulating themselves over their handling of the economy."
Keith Hazlewood, GMB National Secretary, said: "GMB will be disappointed if Corus has made any decision affecting the workforce without speaking to GMB and the other unions. We have learned of this intention from today's media if the reports turn out to be true. Corus is facing an unprecedented downturn in market demand that has caused its order book to drop by more than a third.
"The unions' met Corus last Tuesday and this was not mentioned. There are no scheduled meetings with the company in the near future. That could change very soon."
BBC News has learnt a formal announcement about the job losses could come as soon as Monday morning.
It's believed no major plant closures are likely to result from the plans.
Corus issued a statement saying it could not comment on rumour or speculation, but it is a fact that the company is facing an unprecedented downturn in market demand that has caused its order book to drop by more than a third.
In December, unions representing the 25,000 UK workforce of the steelmaker rejected a proposal for workers to take a 10% pay cut.In December, unions representing the 25,000 UK workforce of the steelmaker rejected a proposal for workers to take a 10% pay cut.
The last major jobs cutback by Corus was in 2003 when up to 3,000 jobs were cut across the UK, with many going in Wales.The last major jobs cutback by Corus was in 2003 when up to 3,000 jobs were cut across the UK, with many going in Wales.