Corus has confirmed that 1,100 jobs are to go in Teesside's steel industry after it formally rejected proposals put together last week by trades unions to save the 6,000 jobs under threat around the country.

The company announced last Thursday that amongst the jobs to go would be 650 from Steel House at Redcar, 234 from the coil plate mill at Lackenby and 140 from Stockton and Hartlepool.

It was revealed that steel workers will receive cash payments of £2,500 each as part of a revised version of Iserbs, a European scheme to benefit redundant steel workers.

Tony Poynter, chairman of the multi-union steel committee at Teesside, said negotiations with local managers on redundancy deals had now started.

The unions are fighting for better packages for workers over the age of 50 in the hope that more volunteers will come forward, allowing younger staff to stay on. They are also demanding that staff be redeployed to other Corus plants.

To soften the blow, the Government last week announced details of a multi-million pound aid package for the Tees Valley and promised that former steel workers will be considered first for the new jobs.

Redcar MP Mo Mowlam said: "Our thoughts are with the hardworking men and women and their families who will be devastated by this news.

"While this is bad news for Teesside, I am pleased that the Government has put together a strong package to help the individuals affected, and to continue the area's regeneration."

Coun David Walsh, leader of Redcar and Cleveland Borough Council, said: "The aid package is welcome and will radically help with the improvement of Teesside's infrastructure. It is sad that it has had to come as a response to mass sackings at Corus."