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Home  » Business » Corus chief rules out job cuts in UK

Corus chief rules out job cuts in UK

Source: PTI
January 31, 2007 18:23 IST
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Anglo-Dutch steel maker Corus has ruled out any job cuts at its UK operations following its successful acquisition by Tata Steel.

Media reports quoted Corus chief executive Philippe Varin as saying that the company had no intentions to shed jobs at its main sites in Port Talbot, Scunthorpe and Rotherham and added the deal was the best thing for employees.

"It's very clear what is key is that we have to be globally competitive. To be so, you have to access low-cost production. Therefore, this transaction is in the best long term interests of the employees and is predicated on growth, not job losses," Varin said.

However, Varin said he could not make cast iron guarantees that no jobs would go, stating he had "never been in a position in my professional life" to make such claims. "We don't have plans of plant closures in the context of this merger," Varin said.

Tata's bid, which at 608 pence per share defeated CSN's 603 pence per share offer, was described as "fair and reasonable" by the Corus board this morning.

Tata Steel officials would meet with Corus pension representatives over the next few days to discuss whether the Indian firm will improve its pension terms for Corus workers, reports said.

Last October, Tata pledged to add 126 million sterling to the pension fund and up the contribution rate to 12 per cent.

"A fairly comprehensive agreement was reached previously. Over the next few days that dialogue will start again but we fully expect that Tata will again reach an agreement that is acceptable to both parties," David Lloyd, finance director, Corus said.

The Tata-Corus saga

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