THREATENED Nestl workers could lose more than a THIRD of their intended redundancy package under controversial new proposals, the Evening Press can reveal today.

Nestl bosses have confirmed fears that they are seeking to radically change their redundancy payout system in the face of new age discrimination legislation.

But long-serving workers fear it would be like "losing a winning lottery ticket", as they could be out of pocket by as much as £30,000. A Nestl spokeswoman confirmed the change, if successfully introduced, could apply to those 234 workers being axed from the company following yesterday's shock announcement.

Union chiefs have vowed to fight the plans, saying they expect Nestl Rowntree to "honour the original agreement".

Representatives from the GMB, TGWU and Amicus, have already met managers to try to resolve the issue. Under the proposed new redundancy formula, Nestl staff would receive four weeks' pay for each full year of service, up to a maximum of 20 years.

The current scheme is done on a sliding scale based on age and length of service, with the maximum payout of three years, or 156 weeks, worth of wages.

With the proposed system workers would get a maximum of 80 weeks' wages.

Under the new age discrimination legislation, which comes into force from October 2006, employers would be prevented from giving higher redundancy pay-outs to older workers. Companies are now seeking to level down payments so workers of all ages get the same rate.

A production line worker, who has worked at the factory for more than 30 years, revealed under the current system he would receive a redundancy pay-out of nearly £75,000. This would be slashed to £46,000 if the new scheme was implemented.

"We've been stabbed in the back," he said. "This is a terrible slap in the face for anyone who has served a lot of years. It's a case of us trying to get as much money as we can before it's too late."

GMB organiser John Kirk said: "We've said to the company we have an agreement and we expect them to honour it. We don't accept any change to the redundancy terms - we can't be any clearer than that. It may well be they want to terminate the agreement, but they must give six months notice to do that."

Mr Kirk said the workers' security of employment agreement outlined redundancy terms which form part of their contract of employment. As a result, he said, "the company can't unilaterally change an individual's terms and conditions".

A Nestl spokeswoman said: "We are in currently in consultation regarding new severance terms.

"These new terms give two-and-a-half times the value of the current statutory scheme, and unlike the statutory scheme there is no limit to the value of a week's pay under the Nestl formula.

"We are very keen to make sure the terms are fair and reasonable for all, we also want to make sure that workers with a great history and experience of confectionery making are not lost to the company.

"We expect redundancies among our process and craft workers will be achieved through voluntary means. We are consulting with the unions in connection with the new severance terms."

Updated: 10:08 Friday, March 03, 2006