Irish Ispat employees want a £9 million (#11.43 million) surplus in the company pension plan used to supplement their statutory redundancy payments. The 400 workers who stand to lose their jobs when the company is liquidated this week could get in excess of £220,000 each if the full surplus is distributed amongst them.

Mr Joe O'Flynn, SIPTU regional secretary, said the employees had now decided to pursue this option following the rejection by the company of a trade union rescue package. "Although we knew it was a difficult road we understood that there was some hope in relation to the rescue package. Ispat International chose to reject the package out of hand. So now the gloves are off and we are going to do everything we can to benefit the plant's workers," he said

Irish Ispat employees met on Saturday to discuss their next move in light of the rejection of proposals to re-open the plant by the management of the steel company in London on Friday.

The rescue package included 47 redundancies, deferral of production bonuses, cutbacks in the overtime budget and the elimination of contract work.

Workers had also agreed to invest 10 per cent of their wages into a fund to be invested in the plant. The package would have resulted in savings of £3.5 million to the company over a one-year period.

A spokesman for the Tanaiste has refuted claims that Friday's meeting between Ms Harney and Ispat International was simply a formality before the plant was closed.

Ispat International spokesperson, Ms Annanya Sarin, had claimed that the company had only met with the Minister to confirm the closure of the plant.

But Ms Harney's spokesman said that this statement was unfair and untrue, adding that the new proposals had been discussed at the meeting which was held at Ispat International's headquarters in London.

The meeting with Ms Harney had been arranged prior to the recent talks under the chairmanship of the Labour Relations Commission.

Ispat International is the eighth largest steel producer in the world with a steel shipment of 16.4 million tonnes in 2000.

The company has steelmaking operations in the US, Canada, Mexico, Trinidad, Germany and France. Ispat International is the world's largest producer of DRI, a pure raw iron material used to produce low-cost liquid steel.

In the three months ending March 31st Ispat International's sales fell by 18 per cent to £1.15 billion. The Irish Ispat plant had been running at a loss of £750,000 per month.

Some 400 workers face the dole queue following the closure of the plant. Cork East Fine Gael TD Mr David Stanton has called for the establishment of a special taskforce for the Cork harbour area in the light of the decision to reject the last-ditch proposals made by SIPTU.

Ispat International acquired the Haulbowline plant, formerly known as Irish Steel, in May 1996 from the Government at a nominal cost of £1. A liquidator is set to be appointed at the creditors' meeting scheduled for Thursday.