STEEL company Corus has been criticised for awarding its chairman a huge pay rise while it is embroiled in a row over a pay freeze for workers.

Sir Brian Moffat was paid £558,846 in basic pay and fees last year, which the Iron and Steel Trades Confederation says is an increase of 130 per cent.

The company, which axed 6,000 jobs nationwide, including 1,100 on Teesside last year, said it was because he took on the role of chairman and chief executive after the previous bosses were sacked.

But the decision has angered unions battling to get workers an annual pay rise. The company said it was freezing pay as it tried to combat market forces that resulted in the job cuts last year.

Tony Poynter, chairman of the multi-union steel committee on Teesside, said he did understand the company's decision, but added that it was an insensitive move.

"It will anger people and I can understand people's frustrations. We will proceed with our pay claim and we are meeting soon to see how we can take that forward."

Middlesbrough South and East Cleveland MP Ashok Kumar said: "This news, hidden away in the small print of the company's annual report, comes at a time when many hundreds of Teesside steelmakers have lost their jobs and livelihoods.

"It also comes at a time when Corus had made a £386m loss, scrapped payments to shareholders and imposed a wage freeze.

"If there was any measure of integrity here, Sir Brian should be stepping forward to take a pay cut, not accepting a massive pay rise."

This seems to be a case of a fat cat demanding more cream, and making other people pay the price for it."