Workers at engineering business FG Wilson “from managing director down” face a 10% pay cut and a four-day week as it seeks to prevent further job losses.

All employees at the US-owned company’s three bases in Larne, Springvale in west Belfast and Monkstown are affected in the cuts, part of a global cost-cutting exercise by Caterpillar.

Shop floor workers are expected to work under the new arrangements from May 4. The remainder begin on June 4.

All received the news which many had been dreading on Thursday.

A spokesman for trade union Unite, which represents many of FG Wilson’s 2,000-strong workforce, said it would be consulting with members on the changes.

He also said it had been in talks with management over how the 10% pay cut — which he said would be implemented “from managing director down” — would be managed.

“Overall it will mean people working four hours less a week.

“They might drop an hour a day from their daily shifts, or take a half-day at the end of the week”

Those paid on a monthly basis are expected to work a four day week.

He added: “Hopefully at this stage this is a temporary measure to safeguard the jobs and prevent any compulsory redundancies.”

The four-day week follows the announcement in January of 260 redundancies at the company, which makes generators.

At the company’s main plant in Larne, 138 jobs are to go.

Twenty-seven will be made redundant at the offices in Springvale, west Belfast, and 45 from its operation in Monkstown, Newtownabbey.

All the 260 redundancies were taken voluntarily.

At the time, FG Wilson told employees that other ‘austerity measures’ such as minimising shift work and cutting agency workers had not been enough to dispel the cloud of economic gloom over the company’s prospects.

Its order books have been badly hit by the global downturn in construction. Around 160 agency workers were laid off shortly before Christmas.