Anglo-Dutch steelmaker Corus may now face industrial action from its British staff after rejecting proposals yesterday by the Iron and Steel Trades Confederation (ISTC) to continue heavy steel operations at the Llanwern plant in Wales.
"ISTC is balloting its members on industrial action which will take about 14 days to organise," an ITSC spokesman for the ISTC.
The union proposals, which would have saved 1,340 jobs, involved the British government paying half of workers' wages for a year in the hope of an improvement in trading conditions.
Corus blames its decision to cut jobs on poor market conditions which include the strength of the pound and falling export orders.
Corussaid an oversupply of carbon steel products into the EU caused prices to weaken towards the end of 2000 and into 2001.
It has also been hit by high transport costs and acute competition in our export markets.
AFP