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Billionaire Tata on the cadge Print E-mail
By Miles Todd and Mick Murphy. Scunthorpe CLP (personal capacity)   
Monday, 05 January 2009

corus.jpgWe learned recently that Corus (ex-British Steel) and other “free market, risk-taking” manufacturers have begged Brown for taxpayers’ money to bail these profiteers out.  As the “Scunthorpe Telegraph” reported, Corus` conglomerate Tata announced profits of £2.47bn in 6 months to September - up 144%. Meanwhile steel production cuts of 20% were increased to 30% in November. Corus-Tata`s hypocrisy might be thought insufferable.

Following national cuts in overtime and bonuses, and contractors` redundancies, contractors` 10% pay cuts in S. Wales were railroaded through by union leaders with “vote yes or it`s your jobs” after a 2:1 vote, - thus trumping even the bosses` and New Labour cynicism. Following free market logic, we can all work for Tata`s home-Indian level wages “to save jobs and plants!” Bosses wherever they live are no different to U.K. ones when profit is concerned.

In Scunthorpe, with 4,500 Tata and 2,800 direct contracting jobs (800 are organised by the GMB, the majority are in the trade union Community), Tata wasted thousands on cinema propaganda speeches, seeking €50m “savings” to March (now rumoured to be 100m Euros), yet steel analysts M.A.P.S. see no improvement till June. In recession, companies blame utilities, rivals, suppliers` costs etc. This shows the need for wholesale nationalisations in order for planning to be organised.

Tata also passed begging bowls to the European Union, for their Dutch Ijmuiden plant – more than 4,000 directly employed. They hope to divide and rule union FNV, getting Tata workers to do contractors` work by sacking 700 of the latter, and enforcing 6 week holidays. There, when output drops 30% in 2 months, Tata begs the state & EU to pay 200M€, 70% of wages; Tata offers 30% (for 6-24 weeks downtime “re-skilling,” etc. - for what, we`re not told). Unfortunately for the EU and pathetic, writhing Labour “steel” M.P.s., Thatcher stopped the U.K. levy for this. Brazen Tata still expect free-market Mandelson and EU to cough up, INCLUDING now for their Landrover-Jaguar plant (15,000 jobs, having sacked 850 in Nov.).

On December 11, Corus and union tops talked; after all, after the union leaders´ Welsh sell-out, and doing nothing over recent Corus` sackings of 500 distributors, and many contractors, why not sell-out 25,000 Corus employees and contractors nationally? The union leaders thought they could get away with it. However, following local reps´ consultations, leaders were forced to reject a floated “temporary” 10% wage cut - quoted as a done deal in previous day`s “Financial Times.” This proposed wage cut was loosely based on the S. Wales` stitch-up.

On 19-20 December Corus were trying to impose local 15 day-month shifts (down from 21) “temporarily,” for 1,000 workers, with shift premium losses of 11.5%, and threats of unspecified lay-offs on 50% pay. Community General Secretary Leahy`s complaint was that they should spread the pain broader! In the meantime Tata also announced sponsorship of Ferrari F1 – that doesn’t come cheap!

Letters to the “Scunthorpe Telegraph” here talk of taking “preference shares” in troubled firms but what use are ANY shares, with most shares falling 30-50% globally in 2008? A Socialist Appeal supporter`s letter countered with the demand for nationalisation, and union fightback as outlined below

·         Not a single redundancy or pay cut in Corus-Tata, or any industry! All account books to be public.

·         For a 32 hour week with no loss in pay.

·         Nationalise all failing companies, utilities and finance, with compensation only in proven need! For a worker-controlled Corus-Tata, utilities and key manufacturers

·         A rank and file, militant fight back for accountability in Community, GMB, Unite and all unions, and for Labour MPs.

 

 

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