The site will close in August

Around 870 jobs will be lost when the factory closes in August.

A pay offer put forward by the Korean firm has been branded "insulting" by union officials, who have pulled out of negotiations.

Staff at the plant, which manufactures tubes for computer monitors, are now threatening a mass walk-out.

Production has already been hit because some workers are leaving early.

Chris Walker, a process controller at the plant, said the workforce was distintegrating.

"There are a lot of people who have handed their notice in already," he said.

"Certain departments can't run because they haven't got the staff to run certain equipment.

"I just feel it is going to collapse."

Then-Prime Minister John Major welcomed the investment by LG

Mr Walker has been offered two weeks pay for every year of employment and a bonus of �500 to stay in work until August.

The union, Amicus, believes the workers deserve a better deal.

"The majority of them feel totally let down by the company," said spokesman Peter Radmilovic.

"They have been treated with arrogance in most cases by most of the British management here.

"They seem to be spineless, they will do nothing to counteract anything the Koreans do."

The union is accusing the Korean arm of LG Phillips of trying to leave Wales as cheaply as possible, despite receiving millions of pounds of investment to set up at the Newport site in 1996.

Aid package

The closure of the factory, which was announced last month, has been blamed on a dramatic downturn in the global market.

A spokesperson for LG has said it is hoped there was scope for agreement in the pay dispute, but would not comment in detail on the issue.

When the plant's closure was announced, the Welsh assembly's economic development minister pledged to put a package of measures together to help the workers.

Andrew Davies said he would do all he could to find alternative work for the soon-to-be-unemployed staff.