Unions say the move will avoid redundancies

Appledore Shipyard in north Devon has been waiting for government support for the order for more than year.

A �40m contract for a wind farm barge is dependent on a loan guarantee from the Department for Trade and Industry (DTI).

It would safeguard more than 400 jobs for the next 18 months.

It tides us over for 18 months during a difficult time for the shipbuilding industry John Burnett MP

Managers have confirmed that shop-floor workers will begin a three-day week from Monday.

Unions have said they are not happy about the situation but have also said it is a fair compromise to avoid redundancies in the short term.

Appledore is bidding for the contract from Plymouth-based firm Sea Wind International to build a ship for an offshore wind farm in the Bristol Channel.

Torridge and West Devon Liberal Democrat MP John Burnett urged Tony Blair to throw his weight behind the shipyard last month to secure the contract.

Mr Burnett said a decision on the order is expected within the next fortnight.

Other contracts

He said: "I have emphasised to ministers that time is of the essence. I believe the decision of loan guarantee will be made by 11 June.

"If we get it, then I believe we'll get the contract.

"The yard has got a great future. It tides us over for 18 months during a difficult time for the shipbuilding industry."

The yard said of its employment practices: "Much has been done to ensure that the company remains competitive and to this end the overhead structure is continuously monitored such that the ratio of direct to indirect employees remains at an acceptable level."