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Corus rescue plan rejected

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3 May, 2001Steelworkers may be balloted for strike action, while government offers redundancy aid.

GREAT BRITAIN: In response to the May 3 announcement by the Anglo-Dutch steel company Corus that it was rejecting the unions' alternative proposals for saving 6,000 jobs and preventing plant closures, unions have declared that they may take strike action.
The Iron and Steel Trades Confederation, which had presented the steel group with the trade unions' detailed and viable £90 million rescue package, said they were "bitterly disappointed" over the company's negative response to their counter proposals. Decisions as to whether or not to take industrial action will be made at local branch level very shortly. Five plants are affected.
Following the confirmation by Corus of the job losses and plant closures, the British government announced it would make a lump sum payment of £2,500 (US$3,601) to each of the thousands of steelworkers who will be affected across the UK. A government spokesman said that the priority now was to offer practical support such as training and put in place measures to promote economic regeneration and job creation. A £48 million package for such measures has been announced for England and another for Wales.