Corus slammed for not consulting over layoffs

first_imgCorus slammed for not consulting over layoffsOn 18 Mar 2003 in Personnel Today Steelworkers’ union ISTC has called for forthcoming laws on staffconsultation to include severe financial penalties, after Corus revealed itcould be forced to make 3,000 job cuts. Michael Leahy, general secretary of ISTC, said employees heard on the radioabout the likely job cuts at the crisis-hit company, whose chief executive TonyPedder resigned on Friday. Leahy accused the Anglo-Dutch steel giant of failingto consult. He said the surprise announcement showed that legislation currently beingdrafted by the DTI on information and consultation must impose hard-hittingpenalties for firms that flout it. The information and consultation directive, which becomes law from 2005,places a duty on employers to consult more fully and at an earlier stage withstaff on all issues that affect their employment, such as redundancies andrestructuring. Leahy said: “This is a clear example of why we need information andconsultation legislation and why we need sanctions against directors andcompanies to enforce this. “I am astounded that Corus has made such a dramatic announcement in acallous fashion, with no consultation with the ISTC and the other unionsrepresenting the workforce.” A Corus spokesman said job cuts were needed as the uncertain economicoutlook was forcing it to reduce capacity. The announcement followed an internal disagreement when the firm’s Dutchboard blocked the planned £540m sale of its aluminium business. On Friday, the company announced a net loss of £458m for 2002. It is the notfirst time Corus, formed four years ago by a merger of British Steel and Dutchcompany Hoogovens, has come under fire for failing to consult. Two years ago the company, which employs 26,000 people in the UK, wascriticised for failing to consult with staff before announcing 6,500redundancies. By Quentin Reade Comments are closed. Related posts:No related photos. Previous Article Next Articlelast_img

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