A millionaire boss of a north Wales firm who sacked 87 striking workers has admitted he made dozens of other workers redundant without consulting the unions.

Craig Smith - who denies unfairly dismissing staff at Friction Dynamics in Caernarfon 18 months ago - confirmed to a tribunal on Friday that he had made the earlier job cuts without prior consultation with the Transport and General Union.

Workers have been on strike for 18 months

The hearing was told that this was a clear breach of the employees' contracts.

Mr Smith took over at the car components factory in 2000, The solicitor acting for the sacked workers claimed that he then systematically started to force the T&G union out of the plant.

Giving evidence on Friday, Mr Smith admitted he had moved union officials out of their office to a smaller room - which the union claimed had no heating or telephone.

The 87 workers who were sacked whilst on strike began their dispute in April 2001 when Mr Smith refused to revoke a 15% pay cut.

Picketing

The hearing was told that the other unions represented at the plant had accepted the cut.

The former workers have picketed the gates of the plant every day since they walked out 18 months ago.

Tribunal members were also told about a note from management, which said it would take decisions without regard to the T&G - a claim which Mr Smith denied.

On Thursday, the tribunal heard claims the workers sabotaged the factory before leaving.

Allegations

Giving evidence, Mr Smith alleged a computer shipping password had been deliberately changed, meaning goods destined for Australia could have ended up in Germany but were spotted in time.

Mr Smith also alleged safety instructions on machinery had been taken down on the last shift, ahead of temporary staff being brought in.

Mr Smith said relations between TGWU and management had deteriorated because the union was not allowing the firm to move forward.

The �2-an-hour wage cut was, he said, a temporary measure which was designed to see the company through financial difficulties.

He denied having a strategy to force workers out on strike purely so he could fire them.

Mr Smith also refuted allegations he had called the Welsh workforce "hillbillies" and said they had impressed him with their dedication.

One of the sacked workers, Adrian Roberts, said the workers had been looking forward to the tribunal after a very long 18 months.

Caernarfon MP Hywel Williams has led a campaign to support the strikers and said he hoped the tribunal was the "beginning of the end" of the strike.

Mr Williams said the workers had the backing of other politicians and the local community.

Friction Dynamics has also been criticised by former Plaid Cymru leader and Caernarfon AM Dafydd Wigley and Bill Morris, leader of the Transport and General Workers' Union.

The legal industrial dispute started in April last year, and the workers were fired two months later.

Two days after unanimously voting against the changes proposed by Mr Smith, which included the introduction of a four-day week without overtime, the workers were sacked and replaced with lower paid staff.

Last year, Mr Smith managed to retain control of the factory under an arrangement he reached with a group of creditors, who were suing him in a multi-million dollar fraud case.