MORE than 60 jobs at a Gwent factory could be saved six months after workers were threatened with redundancy.

As reported in the Argus, bosses at TRW stunned workers by announcing the need for 156 redundancies last August.

The move was part of a package which included an increase in the number of working hours from 37 to 39 for less money.

Bosses told the 800-strong workforce they could all lose their jobs by 2007 if "radical actions" were not taken.

It is understood around 90 workers had opted for voluntary redundancy by the end of 2005 but the rest of the workforce rejected the proposals by three to one.

The company said compulsory redundancies would be enforced in the new year to meet the required number of job cuts.

But now the company has confirmed no further redundancies are necessary at this time because of a rise in demand.

Plant manager Steve Stott said: "The reduction required by the announcement made in November 2005 has been achieved through voluntary redundancies thanks to excellent co-operation between the employees and their representatives and the management."

But Mr Stott could not rule out the need for job cuts in the future, adding:"The plant is committed to increasing productivity and is continuing discussions with the unions to reduce labour costs.

"These actions are essential to continue to improve the competitive position of the plant in the face of a highly challenging marketplace."

TRW's Pontypool plant makes brake and steering components for the motor industry.

The company is among the world's top 10 automotive suppliers, with sales of £12 billion.

Bosses blamed the need for job cuts on a drop in business, caused in part by the closure of Rover, and increased competition from overseas for the need for job cuts.

The union chief in charge of negotiations at TRW Automotive in Pontypool said bosses had altered their position after a series of tough talks.

"The company seems to have pulled back from pursuing any compulsory redundancies at the moment," said Neville Taylor, TGWU general executive council member for Wales.

He added that the union viewed the situation as a "stalemate".

"We are still waiting for their response to the workforce's decision to reject the original proposals," he said.