FEARS the company behind the worst pension scandal in the south could go into receivership have provoked staff into demanding a showdown with managers today.

Up to 250 Hampshire jobs could be at risk if troubled Chandler's Ford manufacturer APW Electronics confirms in an announcement scheduled for later today that the receivers have been called in.

Union members, concerned at rumours the American owned firm was about to go under, refused to start work without assurances from management over their future.

Despite fears they may not get paid, they did return to work at the Electron Way site on condition managers met them today.

Asked if staff were going to be told they were being made redundant today an APW spokesman said: "no comment", before ordering the Daily Echo off the premises.

APW hit the headlines in 2004 when it axed its pension scheme because of a £55m black hole. Bosses said they couldn't meet their obligations to the fund and keep the business afloat.

As a result, 1,259 pension scheme members lost 80 per cent of their retirement savings, although roughly half of those recently discovered they qualified for the Government's pension's lifeboat and will receive some money back.

Ian Woodland of the TGWU said he understood staff had been paid up until today but didn't know the precise nature of the overpayments.

He said: "I don't really know if they will be announcing redundancies today but it's looking more and more likely.

"I feel the company should be talking to their workforce and letting them know what's going on."