Steel union, Community, yesterday expressed ‘outrage’ at the announcement to ‘mothball’ Teesside Cast Products with a threat to 2,000 jobs.
The union said that move came as a result of Corus’s consortium partners (Marcegaglia, Dongkuk, Ternium and Duferco) terminating a ten-year steel slab offtake deal after just five years.
Community General Secretary, Michael J Leahy said: ‘This is appalling news.
‘We cannot believe that the consortium is taking such irresponsible action that will have a devastating effect on our members and the whole community in Teesside.
‘The consortium has made this disgraceful move, knowingly jeopardising the livelihoods of thousands of workers who are the innocent victims of this.
‘These multi-nationals have reaped hundreds of millions of pounds in profits and are now walking away from their legal, moral and social responsibilities.
‘We understand Corus is pursuing the consortium to honour the contract.
‘Corus has the full support of the union. Community Union has also instructed its own lawyers to investigate what action can be taken against the consortium to get justice for our members.’
In the coming days, said Community, it will be meeting with its members and ‘doing all it can to secure a future for steelmaking on Teesside’.
The Unite trade union urged Corus to ‘do everything possible to protect the jobs of thousand’s of workers’ at its Teesside plant.
Unite national officer Terry Pye said: ‘The failure of the consortium to live up to its obligations is potentially disastrous news for these workers at Corus’ Teesside plant.
‘The unions will be meeting with Corus early next week where we will be urging the company to do everything possible to protect the jobs of the workers at the Teesside plant.
‘Our members have worked extremely hard for this consortium and they will be outraged by its decision to pull out of this legally binding agreement and jeopardise the livelihoods of so many workers.’
In January, the steelmaker announced it was cutting 3,500 jobs worldwide, including about 2,500 in the UK.
Steel workers must occupy the plants to fight sackings and demand the unions mount a campaign, including national strike action, to renationalise the industry.
