Steel unions prepare for crunch talks

Unions believe they have a plan which will secure jobs

Plans to save 6,000 steel jobs in the UK are being finalised ahead of two key meetings with Corus and Government ministers.

The Iron and Steel Trades Confederation has not given up hope of convincing Corus to accept a scheme worth almost £90m to pay half of the company's wage annual bill in return for a one-year stay of execution.

Corus revealed heavy losses of £1.15bn when it published its annual results earlier this month.

More than 1,300 jobs are under threat at Llanwern

But union leaders are confident that trading conditions will improve by the end of the year, which will help ensure that capacity at plants in Llanwern, Ebbw Vale and Teesside is safeguarded.

Trade and Industry Secretary Stephen Byers will meet ISTC leaders on Monday, who regard the minister's support as crucial.

The delegation will then give a formal presentation of its proposals to Corus on Tuesday.

The next 48 hours are crucial. We will find out whether or not the government has the political will to make this plan work

ISTC union spokesman

Nearly 3,000 jobs are threatened in Wales - with 780 workers at Ebbw Vale faced with the plant's closure.

Barrister Cherie Booth - the Prime Minister's wife - has told the union that the Government will be able to help subsidise its plan without breaching European state aid rules.

An ISTC spokesman said on Sunday: "The next 48 hours are crucial. We will find out whether or not the government has the political will to make this plan work."

The spokesman added that if Corus rejected the proposal unions would have "grave fears" for the future.

'Management failings'

Industrial action ballots could be launched if Corus turned down the union plan.

Up to 1,300 workers at Llanwern face losing their jobs and they have voted to consider industrial action.

A committee of MPs last week criticised Corus in a report over its poor management and failing to involve the government in key talks over job cuts.

But the MPs concluded that little could have been done by the government to prevent thousands of job losses in Wales and the UK.

There was anger when the decision to axe the posts was announced without prior consultation with politicians.