CLEVELAND Bridge workers were once again facing the axe last night after the company announced it was stopping all work on the new Wembley Stadium.

The North-East engineering firm issued a statement saying it was taking legal action against Multiplex, the main contractor at Wembley Stadium, for alleged breach of contract.

It said the decision to stop work on steel fabrication for the stadium would "cause a shortfall in workload and may result in redundancies at Darlington".

The company would not reveal how many workers are likely to go but The Northern Echo understands it will be more than 50 but less than a hundred.

The news comes a month after Cleveland Bridge, which employs about 400 people in Darlington, revealed it was stopping on-site work at Wembley and handing over to Dutch company Hollandia.

The jobs of most of the 250 workers on-site were saved when the new contractor agreed to take them on.

At the time Cleveland Bridge intended to continue off-site work for Wembley but a row over money with Multiplex has put paid to that.

Last night's statement said: "Cleveland Bridge has instructed its solicitors to issue proceedings against Multiplex in the Court of Technology and Construction in London.

"The proceedings are based upon Multiplex's breach of contract in failing to value works and make payment in relation to monies due to Cleveland Bridge."

Company bosses will meet union leaders tomorrow to discuss the job losses.

Jimmy Skivington, from the GMB union, said workers had been told the decision would have a serious impact on the Darlington plant.

Gerry Hunter, from Amicus, described the news as a bitter blow. "This Wembley showpiece is leaving a sour taste in the mouths of people from Darlington who are going to lose their jobs."

Multiplex declined to comment until it had taken legal advice.