SAVED!

Debt-ridden industrial giant Alstom, which employs nearly 550 staff at the Campbell Road depot, had been plunged into crisis last week when the European Commission blocked plans for the French government to help bail out the beleaguered French company, which owes £3.2 billion.

A £2 billion rescue package unveiled early last month would have handed the French state a 31 per cent stake in the company as well as providing a long-term loan.

But the commission opposed the package on competition grounds.

Workers at the maintenance facility in Eastleigh were so concerned that they believed they would be locked out.

However, after intense discussions between Brussels and Paris, the French government has now agreed not to become a shareholder in the immediate future.

It will instead offer loans to provide short-term assistance.

Alstom builds ships, including Queen Mary 2, which is due at her home port of Southampton on December 19, as well as power turbines and trains, including the French high-speed TGV and Virgin's Pendolino tilting trains.

The group's UK presence includes sites in Glasgow, Birmingham, Rugby, Stafford, Leicester and Manchester.

Fears for jobs had already been raised after the company said in August that it was planning to "significantly improve operational performanc''.

It has not specified what the improvements will be.

Alstom has already announced plans to end production at its Birmingham train-making plant, with the loss of 5,000 jobs, when the site completes its single remaining order for Virgin Pendolinos next year and switches to refurbishing.

It is too early to say how these commercial decisions will impact on Eastleigh.

Meanwhile, unions accused the British government of not putting up a tough enough fight for local jobs. Amicus general secretary Derek Simpson said: "Our people have been sacrificed to keep the French afloat.''

Turbulent time for Hampshire workers - see the Business section of 'This is Southampton'.