ABOUT 20 temporary staff at Hampshire's troubled APW Electronics are to have their contracts terminated today.

It is another blow at the firm, where staff are still reeling from news the company pension fund has been wound up, leaving hundreds of past and present workers facing a bleak retirement.

Chandler's Ford based APW, which employs 285 people, said axing the temporary staff was "normal business practice" and moved to reassure permanent staff about their jobs.

He denied the move had anything to do with the winding up of the pension fund, which closed with a £55 million black hole and left its 1,259 members facing a cut of 80 per cent in their pension.

Although a company spokesman refused to confirm numbers, the Daily Echo understands about 20 semi-skilled factory workers on temporary contracts are to go today.

An APW employee, who did not want to be named, said the loss of the temporary workers was just the latest in a long line of body blows to morale.

"Management don't tell us a lot of things but a rumour went around that temporary staff were to be laid off this week. I don't know if it is any relation to the pensions crisis but this is a company in trouble.

"At the moment everyone here is really fed up. Morale is very low and people have lost thousands of pounds. We have had redundancies over the last four years and then the pensions thing and now more jobs going."

An APW spokesman admitted the company had been through "exceptionally difficult" times but said the company had now turned the corner and may even soon begin hiring more permanent staff.

"There are no plans to restructure the permanent workforce in Chandler's Ford and, if anything, with the current business model there's the possibility of taking more people on," he said.

"There will be some temporary workers released this week but that is normal business practice. The temporary workforce increases and decreases in response to busy and quiet times. It is not by any means exceptional."

Jennie Formby, district secretary of the T&G union said: "Whatever the management say, morale is so low because people see that their future has been squandered they can't help but see anything like this as a gloomy portent

"APW is an extremely miserable place to work. We sincerely hope the company is right about taking more people on. We want it to be successful so we can salvage something for our members."