Blair's support for steel workers

The company has agreed to join a working party

Prime Minister Tony Blair has pledged to do all he can to help steel workers affected by the Corus job-cut plans.

The Anglo-Dutch company announced in February that it would have to lose 6,000 jobs - with 3,000 in Wales alone - but unions were encouraged this week following fresh talks with management.

Speaking at the House of Commons on Wednesday, Mr Blair applauded the efforts of union leaders who presented the steel giant with a rescue package and persuaded it to join a joint working party to discuss alternatives to axing the jobs.

We will certainly examine carefully the proposals that have been put forward by the trade unions and management for this specific help with training

Prime Minister Tony Blair

Mr Blair told MPs on Wednesday: "We stand ready to help in any other way that we can with those people, unfortunately several thousand who face losing their jobs.

"I pay tribute to the way that the trade unions have put together their package.

"They have done it in a highly responsible way, a commercially sensitive way, and I hope the company listens to them, we certainly will."

The working party will meet over the next few weeks to work on proposals aimed at saving the jobs.

Passionate attack

Mr Blair added: "We will certainly examine carefully the proposals that have been put forward by the trade unions and management for this specific help with training."

He was responding to Labour MP Denis MacShane (Rotherham) chairman of the steel group of MPs.

Mr MacShane had earlier launched a passionate attack on the Tories for "butchering" Britain's steel industry for 20 years.

Mr MacShane said: "As our nation's hearts go out to farming communities, can we spare a thought for the 6,000 steel workers' families who face great misery without a peep of sympathy from the party opposite or their string-pullers in the press."

As our nation's hearts go out to farming communities, can we spare a thought for the 6,000 steel workers' families who face great misery without a peep of sympathy?

MP Denis MacShane

Following Tuesday's talks with Corus, Mike Leahy, General Secretary of the ISTC said the company's attitude appeared to be more receptive.

"Corus is now engaged in a debate about the future of the industry and we are hoping to make significant progress over the next four weeks," he explained.

"For the first time they are listening and we welcome that. We have started a genuine debate and there is definite hope."

Bob Shannon - National Officer of the Amalgamated Engineering and Electrical Union - said: "We feel that at long last we have made some progress.

"For Corus to agree to hold discussions with us is a real breakthrough. The atmosphere has definitely changed."

He maintained that Corus was still the most efficient steel producer in the world, although there were short term problems.

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

Following talks with the government, the Welsh Assembly and the European Commission, the unions proposed an aid package worth up to £90m - most of it going towards reducing Corus's wage bill.

Some of the money would come from the public purse in the form of training grants, and the rest would be made up from union funds.