text: The West German government today considered demands for nearly 850 mln marks to lay off or retrain 20000 steel workers. Government spokesman Friedhelm Ost said Chancellor Helmut Kohl reviewed a joint proposal by steel employers and trade unions at a special meeting with steel industry representatives. Companies like Fried Krupp &lt;KRPG.D> and Hoesch Werke AG &lt;HWKG.F> which saw profits plunge last year have taken the unusual step of aligning with the metalworkers trade union IG Metall to press for government finance to slim staff levels still further. Government officials said Bonn was prepared to take part in a common effort to find a solution for the steelworkers. But since the government was struggling to finance tax cuts by reducing state subsidies it could not pay for all the layoffs. A spokesman for IG Metall said the joint proposal foresaw redundancy payments to 10000 workers in Ruhr and Rhineland plants. Some 6000 workers would be redeployed in non-steel making sectors of steel companies while a further 4000 would be eligible for job-retraining schemes. Redundancies are estimated at 600 mln marks while job retraining would cost a further 240 mln. REUTER
target: GERMAN STEEL INDUSTRY SEEKS LAY-OFF FUNDS