9 August, 2010UK metalworkers realize pay dividends with Tata's Corus Steel.
UNITED KINGDOM: Bumper pay packages were negotiated last week between British unions, including Unite the Union, and Corus, the steel producer owned by India's Tata Group. In what Unite termed a "breakthrough" in talks that dated to last May for 12,000 UK steelworkers, labour and management agreed to a 2010 pay deal of 3.2 per cent, backdated to April 1.
The tentative agreement, which also includes a £200 lump-sum bonus, will now be voted on by Unite's 8,000 members, with results due in early September. Two other UK unions representing Corus workers, GMB and Community, accepted the same deal, with its bargaining leaders empowered to ratify the agreement.
The 2010-2011 collective agreement covers steelworkers at some 15 Corus worksites.
In June, the pay offer by Corus was between one and two per cent. The culmination of hard bargaining last week pleased trade union leaders of all three organizations, particularly since workers agreed to take a pay freeze last year that was included in £1 billion in savings served up to the steelmaker in order to help the company through the recession.
"This new deal offered by Corus will go some way to rebuilding trust with management," stated Unite National Steel Officer Terry Pye. "Whatever the outcome of the ballot with our members on the revised pay offer, we are pleased that the company has made a significant improvement to the pay offer, which we are recommending to our members."
GMB National Secretary Keith Hazlewood said, "After last year's pay freeze and a very turbulent 18 months it would be nice to think that we have seen the worst, and have the makings of a foundation to build on for a secure future for our members and local steel communities going forward."
India's Tata Group bought Anglo-Dutch Corus in 2006 for US$12 billion. UK unions remain hopeful that one Corus site that was partially closed in February in North-east England will reopen under new ownership. Union leaders, together with national and local officials have been negotiating with Sahaviriya Steel Industries of Thailand to operate the Teesside Cast Products mill.