Tata’s Steel unit Corus has urged the government of Netherland to subsidize a reduction in work hours of staff equivalent to a cut in 1,100 full-time jobs, a company spokesman said on Tuesday (December 02). Corus, based at Ijmuiden near Amsterdam, employs 11,300 workers in the Netherlands.

According to a media report, Corus spokesman Dick Schiethart said that Corus had applied for a government-funded work-reduction scheme. He, however refused to indicate how much amount the company would save if granted the government support. To qualify for the work-reduction scheme, companies in the Netherlands must have reported a 30 percent decline in sales in the past two months.

Gerd Riphagen, a spokesman for Social Affairs Minister Piet Hein Donner said the ministry is examining Corus' application and although a decision could be made within the week.

Adding further on the issue, Schiethart said that the reduction in hours will be applicable on 6,400 workers, who will work a day less per week. Initially, this would continue for over a period of six weeks.

Corus had last month said that as a result of the global economic slowdown, the company was expected to produce about 30 percent less crude steel than it actually planned during the two quarters to the end of March 2009. Corus is the second-largest steelmaker of Europe.