Jack Dromey: "Face future with confidence"

A total of about 3,000 workers will be moved to private naval dockyard firms in a scheme aimed at saving the taxpayer more than �300m over five years.

Union members were furious and voted to take industrial action. They feared about 750 jobs would be lost through the plans.

UK Armed Forces Minister Adam Ingram had previously warned that the majority of the anticipated jobs losses would come on the Clyde.

Workers staged a one-day strike but ballots for further action were suspended pending the outcome of the latest talks.

Tuesday's agreement will see Babcock take over about 1,700 workers at the two yards in Scotland.

'Industrial partnering'

The company has agreed to protect the pay and other conditions of employment for any workers whose jobs it takes over.

Speaking after agreement had been reached, Jack Dromey, national officer of the Transport and General Workers' Union (TGWU) said: "We have built a powerful platform for naval base workers, still rightly bitter over privatisation, to face the future with confidence."

The companies have also accepted that they will match the new pay and grading structures to be introduced by the MoD later this year.

Union officials have consistently claimed that their public sector alternative to the MoD plans were not given proper consideration.

The MoD has stressed that the plans mean "industrial partnering" rather than privatisation.