Working for Corus? See what Community is doing in your workplace
RE: British Steel Pension Scheme
You will shortly receive a letter from Corus opening a consultation on the future of the British Steel Pension Scheme. Corus want to close the scheme to new entrants – this means nobody else will be able to join the scheme. Instead they will be offered a stakeholder scheme, where the employee takes all the risk and cannot be certain what level of pension they will ultimately receive.
Community and its sister unions in Corus are opposed to closing the scheme to new entrants. In this climate of job threats and job losses, this is just another unwanted attack on terms & conditions.
We are opposed to this change for the following reasons:
- We believe this move is the thin end of the wedge for the British Steel Pension Scheme. There are countless examples of schemes being closed to new entrants and subsequently the scheme is closed full stop - Tata Tea/Tetley being an obvious example.
- We do not believe all the alternatives have been examined.
- Fundamentally, the BSPS is a strong scheme.
- Corus have committed to maintaining their contribution level at 12% until 2011. What Corus have neglected to mention in this consultation is that they wish to cap their contributions at 12% after that. This could affect the scheme’s funding level and subsequently impact your benefits.
- The question must be asked why Corus is taking this action at this stage – in the current climate the chances of new starters is extremely low.
- Corus claim this will not affect your future benefits and yet they cannot give any guarantees about your future benefits.
- Just saying ‘every other company is doing this so we are too’ is not good enough. The BSPS is unique in that most of its funding was taxpayers money. Corus took pensions holidays in the good times, now they’re running scared in the bad times.
- Ultimately, this is about fairness. We want all Corus employees to be safe in the knowledge that they will be secure in retirement. Closing the scheme to new entrants means this will no longer be the case.
You will be invited to participate in this consultation. You must let Corus know what you think about their proposals – unacceptable, untimely and unwanted. This is not just about new entrants; ultimately this is about the long-term future of your pension. The fight for the BSPS begins now. Don’t risk losing your pension – you need to take action now.
Visit the Number 10 website and sign the petition calling for greater support for Corus workers.
http://petitions.number10.gov.uk/SaveCorus/
Message to Corus members from the General Secretary
I wanted to contact you following yesterday’s devastating news of yet more job cuts. As you know, this comes on the back of 2,500 redundancies announced earlier in the year and is in the context of the continuing threat to thousands on Teesside. I know these cuts to the Long Products Division will have a lasting effect upon members in those plants, their families and the communities where they live.
As I stated to the press yesterday, all this just adds to the misery for steelworkers. Corus need to decide if they really are trying to be fit for the future or just fit for the scrapheap.
I have just spoken to the Prime Minister about the situation. He reassured me that the Government will not forget the UK’s steelworkers. The Government have now pledged £5 million to help Corus workers. We know the devil may be in the detail of this funding and we will be following this up in the interest of all our members.
In the coming days and weeks we will be supporting the multi-union committees and your representatives through these difficult negotiations. It is our view that a full 90 days should be provided for consultation, no matter what numbers are involved at plant level.
We have outlined below answers to other questions that you may have. Your local officials should be able to assist with any other issues but our Service Centre is also standing by to help and you can email any queries to servicecentre@community-tu.org or call 0800 389 6332.
At this difficult time, should members wish to relay messages of solidarity to fellow steelworkers or support for Teesside’s Save our Steel campaign, you can email steel@community-tu.org .
Finally, feel free to forward this email on or print it off for your colleagues. If anybody wishes to join our email list or change their email address please follow this link:
http://www.community-tu.org/details
Rest-assured, with your continued support, Community will remain at the forefront of the fight for British steelmaking.
In Unity,
Michael J. Leahy
General Secretary
What does this announcement mean in the long term?
By taking this decision, Corus are saying that the recession has been deeper than they anticipated and now looks like it will last longer than predicted. However, there is a fundamental difference between lowering manning levels to match a reduced output and making cuts that will cripple the capacity of the British Steel Industry.
Community will be asking Corus to provide proof that these cuts will not have long term detrimental impact upon the Industry.
Community will also begin negotiating with Corus to avoid compulsory redundancies, to prevent job losses and to ensure that steelmaking remains a viable Industry in Britain.
What are Community doing now?
General Secretary Michael J. Leahy and the Steel Committee will be seeking a meeting with Corus CEO Kirby Adams.
The General Secretary has spoken with the Minister responsible for the steel industry Pat McFadden MP.
Community will be working at a local level through Multi-union Committees.
Community considers that all redundancies planned for Long Products are covered by a 90 consultation period and will begin negotiations with Corus immediately
Our training arm Communitas will be putting in place the necessary arrangements to provide support to members at a local level.
What does this mean for the Scunthorpe Ballot?
At the moment, the Ballot has been postponed. You should have received your ballot in the post, do not throw it away.
While the Ballot process is being reviewed in light of Corus’ latest announcement, it is too early to state whether the ballot has been abandoned completely.
What does this mean for Strip?
Community doesn’t believe that Corus will be making any announcements for Strip for the time being. This is not definite and may change, however we regularly meet with Corus to discuss the situation and will keep your Branch officials informed. The functional review of Port Talbot is still ongoing. We know this is creating uncertainty and we are pushing Corus for further details and a timeline for any announcements.
For Teesside, visit the Save Our Steel page at the Community Union website
www.community-tu.org/saveoursteel
Community members can access advice and guidance through our Member Service Centre
Free call: 0800 389 6332
More Corus job cuts are ‘devastating’ says Community Union
Community Union described as ‘devastating’ today’s (Thursday) announcement of job cuts in Corus plants across the UK and said there was now a fight on for the future of British steelmaking.
Community Union General Secretary Michael J Leahy said:
“It’s devastating news for our members and their families in steel communities right across the UK. This is bad news on top of bad news – this brings the Corus job cuts for the year to around 4,500 and that’s without the threat to thousands of workers on Teesside and potentially more job cuts in the pipeline for Corus Strip UK. All this just adds to the misery for steelworkers. Corus need to decide if they really are trying to be fit for the future or just fit for the scrapheap.
“We have real concerns for the integrity of the British steel industry – we fear its further erosion could fundamentally undermine UK manufacturing. The Government must also take action before it’s too late. Community Union will be doing all it can in the coming days and weeks to minimise the job losses, oppose hard redundancies and fight for the future of British steelmaking.”
Community Union angered at Corus announcement
Following the announcement on Jan 26th by Corus that 3,500 jobs are at risk across its European operations and that it plans major changes to the pension scheme, Community Union, which represents the majority of UK Corus workers, is seeking urgent talks with the company.
Michael J Leahy, General Secretary of Community said:
“This announcement is a devastating blow to workers and contractors at Corus and will have a knock-on effect for thousands in steel communities across the UK. This is no reflection on the workforce, which has consistently delivered productivity improvements year-on-year and who make the steel industry such a crucial part of the UK manufacturing base.
“Our aim through the consultation process will be to minimise job losses, avoid compulsory redundancies and ensure that there is a long-term future for the
“We’re angered at the decision to bury bad news about changes to the pension scheme, which is a crucial part of our members’ terms and conditions. We’re concerned that today’s announcement could be the thin end of the wedge.”
“We welcome the fact there will be no major plant closures and we will be supporting our members at other Corus sites which are under threat.”
“Support will be available from Community’s education and training arm, Communitas, to help redundant workers retrain and find new employment.”
Community is the largest union represented in Corus. Our members are represented in all areas of Corus' business, and we have a large network of active members.
Community produces a dedicated newsletter for Corus employees 'Corus Community' as well as our union magazine 'Stronger Together'.
The Current economic situation is having an impact upon Corus with production.
Following the announcement today by Corus that it has revised its reduction of crude steel production from 20% to 30%, Michael Leahy, General Secretary of Community said:
"We will be having discussions with Corus nationally and locally as to how we might mitigate any damage that may be caused by the shortfall in the order book.
This revision underlines how the economic crisis is hurting manufacturing in Britain. Community will continue to work nationally for support from Government.
We are hopeful that Corus will look to retain capacity to meet long term demand rather than make a kneejerk reaction to short term trends"
This revised reduction target comes after Corus announced it was seeking to cut 400 jobs in Corus Distribution.