The company plans to make 900 staff redundant over the next few years. However the latest announcement revealed that this would include 60 specialists who would go by December 2006.

DML say the cuts are necessary because of a number of factors, including:

• submarine upkeep work will be reduced to a single stream by the end of the year
• business efficiencies and cost saving initiatives
• yacht work will be reduced to a single build project by August 2006
• some support functions to these areas will contract as a result of the reduced service level required.

Prospect says DML should review its policy of employing agency workers to do the work of permanent staff. There are currently 200 agency staff employed in non-industrial grades at the yard.

Negotiator Jim Cooper said: "DML should look again at the need for job losses. 280 jobs were lost three years ago followed by steady growth in the number of jobs. Instead, it should urgently review its use of agency staff. We are seeking a guarantee of no compulsory redundancies."

DML branch secretary, Del Northcott said: "I hope the company listens to what the union has to say and that we can get through this process without the need for compulsory redundancies. It is especially bad news when DML has shown no sign of reducing the use of agency staff in the yard."