Government to Turn Down Corus Wage Subsidy Request

It appears highly likely that the Government will turn down a request from steel and tyre cord manufacturer Corus for wage subsidies of up to 75 per cent to retain staff in active employment. The request here in the UK comes a month after the company made a similar request in the Netherlands.

The Times reports that British Business Secretary Peter Mandelson seems ready to reject the request for subsidies. “Although we would never say ‘never’, our position is that we are generally opposed to wage subsidies of this sort, which are often uncompetitive and can simply delay job losses which are inevitable,” an unnamed government official was quoted as saying.

Numerous workers at Corus facilities around the UK have been sent home on half pay as demand for steel products slumps, including workers at the Scunthorpe facility, where steel cord for tyres is one of a number of items manufactured.