WORKERS at an engine factory are facing pay-cuts of up to £3,000 per year as part of major wage restructuring proposals, it was revealed last night.

Cummins Engine Company says it plans to re-evaluate pay scales at its Yarm Road plant, in Darlington, but that the overall wage bill will rise.

It is understood that 95 of the 800 workforce - many of whom work in the materials department - face a pay cut of £63.28 per week as part of the proposals. Other workers are expected to face smaller wage cuts.

However, under the proposals, others will see annual earnings rise, although exact figures have not been revealed.

Unions and managers are locked in negotiations after staff were told of the proposals last Friday.

Trade union Amicus is to discuss the matter with its members on Friday.

Bosses said the move was designed to help Cummins stay ahead of its competitors but that no jobs will be lost.

Steve Nendick, Cummins marketing manager, said he could not confirm exact figures as negotiations were ongoing.

He said: "We reviewed all the jobs here and brought in an outside company to do that, largely because the structure we have is about 20 years old, and needs to be changed so we can remain competitive and go forward.

"There were a number of people whose jobs had changed. Some had expanded and weren't getting as much here as they would elsewhere.

"There will be some negative effects, but the company wants to work to minimise that.

"The wage bill at Cummins is likely to increase in total, which reflects the way we are trying to move the company forward, and are hopeful of securing a couple of big new contracts in the next 18 months, which will bring even more business to Darlington. However, nothing as yet has been decided.

Last night, some workers described the proposals as scandalous.

One man, who has worked at the plant for eight years, said: "They're asking people to work the same hours but for less wages, people who've been doing this job for 25 years.

"People have to balance their financial commitments around their wage, and they're still expected to meet them even after taking a pay cut.

"Several of my mates have been affected by the cuts and, although I haven't been this time, I wonder what will happen this time next year."

Gerry Hunter, of Amicus, said: "A job evaluation scheme has been carried out, and we are in discussions with the employer and employees."