A business plan for the company published last week proposed closing nine factories throughout the UK, three of them in Wales.

Remploy plans to open one large factory in Ystalyfera to replace sites in Brynaman, Neath and Ystradgynlais which employ 160 people.

GMB official Dave Evans fears job losses despite assurances

But Dave Evans, GMB officer for Remploy workers in Wales, fears jobs will be at risk.

"There will be a back door redundancy policy," he said.

"If someone left the merged factory they will not replace that person and therefore the job at the factory will have gone.

"If people leave they will not be replaced."

But Disability Rights Minister Margaret Hodge told unions there would be no compulsory redundancies at Remploy, and pledged that more money would be invested in the company.

Margaret Hodge: No compulsory job cuts

At a meeting with the Remploy Consortium Trades Unions she said: "Remploy's total disabled workforce will rise by 1,000 to 11,000 over the next three years.

"Reports of job losses are not true and are only likely to cause unnecessary distress to Remploy's disabled employees.

"I fully support Remploy's plan to increase the number of its disabled employees who can progress into mainstream employment.

"It is a patronising legacy of post war Britain to believe that disabled people can only work in segregated factories.

"I urge the trade unions and Remploy's management to work constructively together in this modernisation programme."

Mrs Hodge said the Government was investing �30m in supporting disabled people to work and another �195m to develop the New Deal for Disabled People.