UNION leaders in the steel industry have reacted angrily to the decision by Corus to axe hundreds of jobs in the North-East, saying the decision was "disgraceful".

The Iron and Steel Trade Confederation (ISTC), said the 530 job losses at Redcar, Teesside, formed part of the company's plans to reduce their capacity in this country in favour of other European markets.

Mick Adams, regional representative of the ISTC, also said the union would only negotiate with management on voluntary redundancies.

"What is most annoying is that productivity has been improving year-on-year by as much as ten per cent," he said.

"To make this announcement after all that has been achieved is nothing short of disgraceful.

"We will cooperate with management provided we achieve these redundancies on a voluntary basis.

"We will not work with them on any compulsory redundancies."

Announcing its decision, Corus described the move as a significant business restructuring aimed at enhancing its competitive position.

But even with the improvements in efficiency and productivity, union members have continued to be concerned about the possibility of Corus moving some steel production to Poland, where workers are paid less than their UK counterparts.

Mr Adams said: "This decision has less to do with the euro and more to do with Corus's worldwide strategy. We believe they intend to significantly reduce there capacity in this country in favour of other markets in Europe."

Corus yesterday reiterated its view that "the sustained strength of sterling against the euro continued to cause severe competitive disadvantages for the business".

Glynn Wheeler, of Corus, said: "Our export to continental markets has fallen from around 45 per cent to under 30 per cent."

The group has said in the past that a joint venture with a Polish plant to produce steel was not part of its plans.