The owner of a company involved in a 15-month long dispute with his workers has been accused of exaggerating the firm's financial problems.

Craig Smith, who took over Friction Dynamics two years ago, was also accused at an industrial tribunal hearing in Liverpool of being "confrontational" with his staff.

Workers have been on strike for 18 months

Eighty-six workers were dismissed by Mr Smith from the Caernarfon plant last June, eight weeks after starting a legal strike over pay and conditions.

Mr Smith had pulled the "wool over their eyes", said one worker, claiming without a pay cut, the company would close.

In Liverpool, sacked worker John Davis is spearheading a claim for unfair dismissal.

If he is successful, his 85 colleagues will automatically win their own case against the company.

Because we felt under pressure, we voted to accept a pay reduction

Gareth Williams AEEU convenor

At the hearing on Friday, it was claimed that Mr Smith had sought for the striking workers to leave and stifled negotiations with the unions by setting impossible conditions of return to work.

This included asking the employees to take a 15% pay cut.

Mr Smith's figures showing the company in crisis were not believed by the workers, said Mr Davis.

The ex-employee said Mr Smith's calculations painted a worse picture of the company's health than appeared the case.

The strike has been backed by the community

AEEU factory convenor Gareth Williams also claimed Mr Smith "exaggerated" the situation and leant on workers to take a pay cut.

"I think we had the wool pulled over our eyes because Mr Smith was indicating that the bank would close down the company if we didn't vote to accept a pay reduction.

"Because we felt under pressure, we voted to accept a pay reduction.

"Mr Smith's next words were 'Right, let's look forward to the next six months.' I felt we had been tricked."

'Confrontational'

Mr Williams' offer to act as a broker between Mr Smith and the workers was "flatly refused" he said.

The union representative said Mr Smith: "wasn't interested in me becoming a peacemaker because the T and G were no longer an issue on the site."

Mr Williams added he felt Mr Smith was "confrontational", causing him to bring his union work to a halt.

"He turned every discussion into an argument," said Mr Williams.

The tribunal is due to convene again on Monday to hear closing arguments from both sides. It is expected to make a decision on Wednesday.