Corus is in negotiations with unions in an attempt to prevent job losses during the economic downturn, including a possible 10% temporary pay cut for employees as an alternative to redundancies.
The Anglo-Dutch subsidiary of Indian steel group Tata, which employs 25,000 people in the UK, is in talks with union leaders from Community, Unite and GMB.
A temporary six-month pay cut is among options being discussed to attempt to save jobs.
In a bid to ensure financial stability during the economic downturn, the steel company will attempt to reduce costs by £350million and is cutting production by 30% in the UK and Netherlands.
The firm has also banned overtime working as part of the cutbacks. Some blast furnace plants, including those in Scunthorpe and Port Talbot, have also been temporarily closed.
Talks will take place in London today (December 11 2009) in an attempt to move proceedings forward.
A spokesman from the union Community said: “The reports that a pay cut agreement has been made are bogus. Community has recently met with Corus management to discuss a response to the current economic situation.
“The negotiations are ongoing and it would be premature to speculate on the outcome. Nothing has been agreed at this time.”
Jimmy Skivington, GMB organiser, said: “GMB members have not agreed any pay cuts. We will continue with the talks with the company in the hope that together we can find a solution to the current difficulties which are reflected throughout industry.”
Corus were unavailable for comment.