One hundred York workers face the dole queue again today after talks aimed at saving bus and coach plant Plaxtons ran into severe difficulties.

It had been hoped that some of the jobs could be saved after a rescue package was put together for the plant, which employs 750 at Scarborough.

Nobody at Plaxtons would confirm the fresh hitch today.

But a senior source has told the Evening Press a lack of interest from public bodies and difficulties in meeting union requests have put the rescue deal at risk.

The grim news comes on the day components firm McKechnies announced plans to shed jobs in Pickering. More than 150 workers will be made redundant, 76 voluntarily, leaving a workforce of 134.

Bosses blamed the impact of the strong pound for the redundancies.

At Plaxtons, bosses announced plans to close entirely earlier this month. The current rescue talks involve the Transport and General Workers Union, factory bosses and bodies such as Yorkshire Forward.

It had been announced that the firm would become a "centre of excellence for coach building", and that between 150 and 250 jobs could be saved.

But today, a senior Plaxtons source said the talks were in "serious" danger of breaking down.

The source said: "They have run into a number of difficulties. Management and the unions are having trouble agreeing and there is disappointment at the lack of support from bodies such as the local authority, government and Yorkshire Forward.

"There is definitely a fear that the plant is about to collapse."

York resident and Plaxtons worker Mick Horsman said the news was not a surprise.

He said: "In my opinion this situation was stage-managed 18 months ago and the plant has been run down since then.

"Morale is low and I think a good few of the others have been thinking the same way as me."

Mr Horsman, of Fulford, said he has been preparing for redundancy.

"You don't want to think about it but you have to, and I have made some job applications.

"It will be a real shame if the place does close, as it is a large and commercially viable plant with a very good workforce."

Plaxtons spokesman Bill Simpson would not be drawn on whether the collapse of the talks is imminent, saying only they are "at a critical stage."

He said: "It is now imperative that we reach a conclusion about the possibilities of saving the coach business. It is now almost a month since we announced plans for the restructuring of the business and time is not on our side."

A T and G spokesman said it was difficult to comment on comments from an anonymous source.

But he added: "These are serious talks and as such they are always likely to have hiccups."

Updated: 10:53 Wednesday, May 30, 2001