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Steel move hits jobs

21st january 1993
Page 5
Page 5, 21st january 1993 — Steel move hits jobs
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Which of the following most accurately describes the problem?

• British Steel is considering plans to drop at least 11 of the 17 hauliers it uses at its site in Lackenby, Redcar, putting up to 170 drivers' jobs at risk.

Only six hauliers have been asked to re-tender for the distribution of finished and unfinished steel products from the Cleveland plant, in what British Steel describes as a "paper exercise" to see if it can cut its distribution costs. The preferred six are Prestons of Potto, R Durham & Sons of Billingham, Allinsons Transport of Darlington, David Fox Transport of Grangetown, G Stiller Transport of Darlington and Youngs (Stokesley).

The Transport & General Workers Union says it is disgusted the hauliers who were not asked to retender only found out about the exercise through heresay. It fears British Steel will only use one or two hauliers, with devastating results for the remainder. "It's diabolical that they were not told so that they could start preparing themselves for the outcome which could lead to massive redundancies," says TGWU district officer Allan Gray.

AV Dawson of Middlesbrough, which was not asked to re-tender, has already issued redundancy notices to eight drivers. It has worked for British Steel for 30 years and says that without the work it will probably pull out of haulage to concentrate on warehousing. RF Richardson Transport, also in Middlesbrough, says half of its 35 drivers could lose their jobs.