STEEL giant Corus has been criticised for awarding its chairman a whopping 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, a figure the Iron and Steel Trade Confederation says is an increase of 130 per cent.

The company, which axed 6,000 jobs across the country last year, said this was because he took on the role of chairman and chief executive after the previous bosses were sacked.

The move has angered unions battling to get workers their annual pay rise. The company said it was freezing pay as it continues to combat the market forces which resulted in last year's massive jobs restructuring programme.

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," he said. "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 added: "This news, hidden away in the small print of the company's annual report, comes at a time when hundreds of Teesside steelmakers have lost their jobs and livelihoods. It also comes at a time when Corus has made a £386m loss, scrapped payments to shareholders and imposed a wage freeze on their remaining employees.

"It is scandalous. 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."