Corus to pay half salaries to about 1,000 workers in UK
Facing liquidity crunch, Tata's owned European steel major Corus has decided to pay half salary to about 1,000 of its employees in four UK plants to save costs.
By PTI |
LONDON: Facing liquidity crunch, Tata's owned European steel major Corus has decided to pay half salary to about 1,000 of its employees in four UK plants to save costs.
The half-pay agreement, which is part of the company's cost saving programme, affects four steel plants in the UK and entails the employees to get half their basic salaries without coming to work.
As per the agreement reached with the workers' union, about 500 employees each at Llanuuern plant and Corby unit and a few others at two facilities in the UK, would be paid 50 per cent of their basic salaries, while staying back home.
"When we go through the relative period of inactivity, we can invoke such an agreement we have with the union, by way of which we can have some of the workforce not coming to work while being paid 50 per cent of their basic salary," Corus Spokesperson Bob Jones said.
The company employs about 25,000 people in UK, while its total workforce stands at about 41,000.
Tata Steel Managing Director B Muthuraman had in December said the company is committed to saving Rs 300 crore in the next five months by reducing operational expenditures and overhead costs.
The subsidiary of Indian steel giant Tata Steel had also applied to the UK and the Netherlands government to partly fund its work reduction scheme.
The half-pay agreement, which is part of the company's cost saving programme, affects four steel plants in the UK and entails the employees to get half their basic salaries without coming to work.
As per the agreement reached with the workers' union, about 500 employees each at Llanuuern plant and Corby unit and a few others at two facilities in the UK, would be paid 50 per cent of their basic salaries, while staying back home.
"When we go through the relative period of inactivity, we can invoke such an agreement we have with the union, by way of which we can have some of the workforce not coming to work while being paid 50 per cent of their basic salary," Corus Spokesperson Bob Jones said.
The company employs about 25,000 people in UK, while its total workforce stands at about 41,000.
Tata Steel Managing Director B Muthuraman had in December said the company is committed to saving Rs 300 crore in the next five months by reducing operational expenditures and overhead costs.
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The subsidiary of Indian steel giant Tata Steel had also applied to the UK and the Netherlands government to partly fund its work reduction scheme.
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