A ROYSTON firm look set to slash the working hours of its 150-strong workforce. Thermal Engineering Plc is staying tight-lipped on reports that it has asked its staff to take a pay cut or reduce their working hours. The Orchard Road-based firm declined to

A ROYSTON firm look set to slash the working hours of its 150-strong workforce.

Thermal Engineering Plc is staying tight-lipped on reports that it has asked its staff to take a pay cut or reduce their working hours.

The Orchard Road-based firm declined to comment, but an insider said: "Last week Thermal Engineering informed its entire staff that they are looking at reducing their pay by 10 per cent, or cutting their hours to four days a week only. This will come into effect on July 1."

Launched in 1988, Thermal Engineering manufactures components for the aerospace industry, and counts Rolls Royce and Airbus amongst its biggest clients. The firm now has a yearly turnover of over �10million.

If true, the news would represent another blow to the manufacturing sector in Royston, which seems to have been hit especially hard by the global economic slowdown.

In January, Royston's biggest employer, Johnson Matthey, announced 100 job cuts at its plant, while other staff were asked to alter their shift patterns.

And in April, another large firm, LDS Test and Management, announced that it would be consulting with its 130 employees about possible job losses.