Corus under pressure regarding Teesside plant closure
Corus, one of the world's largest steel producers, will this week receive a hard-hitting report from MPs warning that the company needs to ensure the "mothballed" plant on Teesside is not wound down to the point where it cannot be reopened when the economy improves. While many of the 1,600 workers at the plant have already lost their jobs a number have been retained in other areas of the operation and some are indeed helping with the closure of the plant itself.
It is unclear exactly how MPs and the UK government could order Corus to retain the plant in working condition but in the run-up to the next general election we are likely to see significant political manoeuvring between various parties. We also need to remember that the plant in question is located in a Labour party stronghold and there will indeed be significant pressure on the government to offer some kind of financial assistance.
So far Corus has been fairly quiet on the rumoured move by MPs and the government and ultimately the company has enough sway in the UK, with other operations providing significant job numbers, to effectively overrule any UK government ideas. It was also noticeable that no representatives from Corus were in attendance at the recent review of the planned closure by MPs, despite an invitation by the authorities.
Share this..
Related stories
Credit crunch 'will not affect student finances'
A spokesman for the National Union of Students (NUS) has claimed that the fallout from the credit crunch has not had a major impact on this year's student intake.He suggested that part of this could be down to the widening of the eligibility criteria for government grants - something that the NUS has welcomed."I have not seen too much to suggest that banks are overly worried about students. The ri...
Read MoreWhy is the UK economy still struggling?
Today we saw Denmark leave recession in the third quarter, something which has again highlighted the dire plight of the UK economy. When you also consider that the revised figure for the third quarter of 2009 in the UK was a reduction of 0.2% in the economy this does not reflect well against a 0.6% rise in the US. So why is the UK struggling so badly? In order to appreciate why the UK economy i...
Read MoreHigh-profile investors split on UK economy prospects
As if the situation regarding the UK economy was not difficult enough we have seen two well-known investment managers in the press this week stating their very different views on the future of the UK. Firstly it was the turn of Anthony Bolton, a former manager of the Fidelity Special Situations Fund, suggesting that "all of the pieces" for a true bull market in the UK are in place.
...
Could UK unemployment hit 4 million?
A report by the Centre for Economics and Business Research (CEBR) has revealed what could become a doomsday scenario for the UK economy. The survey suggests that a combination of the depth of the worldwide recession, the UK recession and the government's handling of the situation could lead to UK unemployment topping 3.8 million!
While there is no doubt that the report is considerin...
Shop Vacancies Rising as Recession Continues
The amount of shops left vacant at the end of June has risen to have risen to around one in seven as retailers struggle to cope with the implications of the double-dip recession. A report from Local Data Company (LDC) made the findings, and revealed that vacancies of shops has increased in all regions across the UK in 2012, apart from London, while the rate of capital fell from 10.7pc to 10.1p...
Read More