STEEL giant Corus has defended an alleged delay in the payment of workers’ bonuses as hundreds of staff at its Newport plant threaten industrial action.

It was reported in yesterday’s Argus that more than 300 steelworkers represented by Community Union would be balloted in Newport over the possibility of industrial action because of alleged non-payment of bonuses for the last quarter.

But a spokesman for Corus said yesterday that managers would work closely with union officials to reach a new agreement over the value of bonuses paid out by the company, which are being reviewed right across the company's UK operations.

The company said managers are currently working on a new formula for the calculation of bonuses in 2009/2010 after the previous model expired.

This process had become particularly important in light of the tough economic climate of the last 18 months.

A spokesman said: “The business as a whole has been hit severely by the current economic recession, so the issue at stake is the matter of lump sum bonuses in these circumstances."

He added that the company understood the pressures its Newport workers were under during the credit crunch, but that the issue of bonuses and final salary pensions had to be dealt with at a national.

“There is no shortage of appreciation for workers throughout Corus, but a formula has to be created. This is being resolved at a national level and I do not believe there will be individual site agreements.”

The company were unable to put a time scale on when negotiations would be completed, but said it hoped to resolve the issue as soon as possible.

A spokesman for Community Union told the Argus at the weekend bonuses could make up to 20 per cent of their take home pay, with steelworkers at Corus sites in Hartlepool and Corby also threatening industrial action.