We consider the claims by Mr Dromey as unfounded and I require a meeting with him as soon as possible

Murray Easton, Babcock

But that has been denied for a second time by Babcock Engineering Services managing director Murray Easton.

A mass meeting for the dockyard's 2200 staff was held on Friday, as was a clear-the-air meeting between unions and management.

Mr Easton said: "The management at Babcock Rosyth Defence Limited continue to refute the allegation that there are secret plans to reduce the Rosyth facility to one dry dock.

"We consider the claims by Mr Dromey as unfounded and I require a meeting with him as soon as possible.

"This will enable the extent of any information held to be disclosed and full meaningful discussions can take place.

'Scare story'

"We have a totally open dialogue with our own trade unions at Rosyth and would expect Mr Dromey to deal with us in the same manner."

The Ministry of Defence has also dismissed Mr Dromey's allegations as a "scare story".

But Mr Dromey maintained that he had a memorandum of understanding starting talks between the MoD and Babcock, which was signed on 24 January.

"It says that the company is prepared to enter into negotiations to give up its guaranteed workload - six years of guaranteed work - if it gets the contract for Faslane," he said.

"The problem for Rosyth is that if you take away the guaranteed work and it all goes out to competitive tender that has very serious consequences for Rosyth."

In the document which Mr Dromey produced, entitled Memorandum of Understanding Relating To The Warship Support Modernisation Initiative, he highlighted one section which he alleged proved plans were afoot to scale down the operation at Rosyth.

Jack Dromey revealed the document

The section said: "This memorandum is intended to set out the principles which will guide future negotiations between the MoD and Babcock aimed at achieving amended privatisation agreements and a contract for participation by Babcock in the management of the Clyde naval base."

Mr Dromey said: "When we met this morning we were told that Babcock were in negotiations to give up some of their allocated programme, but it was entirely separate from the negotiations with the MoD for the contract at Faslane.

"I said that if they were so confident that we were wrong, could they put their hands on their heart and say there would be no job losses.

"The answer was no, that they could not give any such guarantees to those we represent."

Mr Dromey is now seeking an urgent meeting with Defence Minister Geoff Hoon and Mr Easton.

Earlier, unions met Armed Forces Minister John Spellar to press for assurances over the future of the dockyard.

Signed memorandum

Mr Spellar admitted on Good Morning Scotland that a possible deal which could involve both Rosyth and Faslane was being discussed.

But he said the MoD was examining all four yards in Britain, including Devonport and Portsmouth in the south of England.

"We signed a memorandum of understanding with the companies to enable us to go further in looking at the possibility," he said.

But he denied there would be a deal which would see a rundown of Rosyth in return for Babcock receiving work at Faslane.

More than 2000 people work at Rosyth

"What we are looking at right the way across the board, with all the companies and the various workforces, is a scheme that will actually deal with warship maintenance as a whole rather than with individual companies," he said.

However, he stressed these talks were at an early stage and proposals were not expected until August.

After the two-hour meeting with shop stewards, AEEU Scottish secretary Danny Carrigan described the talks as "positive".

But he stressed that fears remained over the future of the workforce.

Mr Spellar has agreed to meet shop stewards again in the next few weeks to discuss their concerns in detail.