Corus starts mothballing Teeside plant as workers plan strike

Friday 19th February 2010

Steelmaker Corus is to start mothballing its Redcar plant in Teesside today after 170 years of production at the site, as unions ballot workers for strike action.

The industrial plant, Teesside Cast Products (TCT), was first threatened last year, when an international consortium pulled out of a 10-year contract with the steelworks.

The government has said it will do all it can to keep the plant open, and is looking to new investors to buy the site. The partial shut-down today was hoped to be prevented by an 11th hour deal, but non came, and unions warned they would be balloting for strike action over the prospect of job losses.

The Community Union, which represents a majority of Corus employees called again for Tata Corus to show leadership and commitment to the steel plant this morning.

General secretary, Michael Leahy said: "Tata Corus have shied away from any option short of mothballing. They are washing their hands of their loyal and skilled workforce.

"This morning they have had the audacity to tell the Trade Unions and the government to look away and just focus on rebuilding British industry. It is clear their desire is that we turn our backs as they make 1,600 people redundant. This we cannot, and will not, do.

"Until Tata Corus are willing to speak straight, not make people redundant and provide concrete assurances for reopening Teesside Cast Products, Community will continue with our plans to seek our members' support for industrial action."

Speaking yesterday, business secretary Lord Mandelson said: "Politically, we are not going to walk away from this plant. We stand full square behind it.

"We will do everything we can to bring it out of mothballing and back into production as everyone around here wants to see."

The Community union said it was making moves to ballot its members, and the GMB union also announced it was also considering industrial action.

A statement from Corus said: "It is now time for the trade unions and government to turn their attention to rebuilding the British economy, to reviving activity in the construction industry and to ensuring that there is a viable and sustainable future for manufacturing in the UK."

Redcar and Cleveland Borough Council expressed its sadness at the prospect of 170 years of steel-making at Redcar coming to an end this week.

Council leader councillor George Dunning said: "I'm heartbroken. I had 12 years working for TCP, my father worked in the steel industry for 44 years and my grandfather - it's been a Dunning steel industry dynasty, and it's gone.

"We have a world-class steel producing plant and I'm absolutely amazed no buyer has come along to save it.

"Throughout my political career, this is the worst news I've been given for our borough and it's taken the lifeblood out of Teesside's manufacturing industry.

"It leaves the borough with a mountain to climb, but we knew what could happen and we have been working very hard since last summer preparing for the worst."

He added that the council believe the £60 million announced by business secretary Lord Mandelson in December for the Tees Valley Industrial Programme will be a "real shot in the arm", saying: "It offers direct and immediate help to create new opportunities and we are working with One NorthEast to bring forward exciting projects to create new jobs and businesses."

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