A LARGE Newton Abbot marine engineering company has put all its staff on a four-day week as the economic downturn continues to bite.

It will mean a big cut in wages and salaries for about 50 employees at Teignbridge Propellers on the Brunel Industrial Estate.

And the boss has warned of a crackdown on 'time wasting' and 'standing around doing nothing'.

He says there was 'no alternative' in an effort to maintain financial viability.

The firm is one of the world's leading manufacturers of marine propulsion systems and produces high quality bronze and Nibral propellers for luxury yachts, patrol boats and commercial vessels.

Production workers will now no longer come in on Fridays and, in a letter to staff, managing director Jonathan Shaw states it is a result of the 'current economic climate and reduction in business', but there would be no redundancies 'at this stage'.

The four-day week applies in the main to hourly paid workers, though

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there may be 'some exceptions based on the needs of the business, where individual assessments will be made and employees advised of the appropriate reduction in hours required'.

Mr Shaw said salaried staff will also have to work a four-day week, and be paid accordingly. Each department would have to choose which day to take off.

He continued: 'It is envisaged that the short time working programme would be for no more than ten weeks up to the end of March, and would be reviewed on a weekly, if not daily, basis. This action will result in a temporary change to your terms and conditions of employment.

'There will need to be some level of flexibility when the needs of the business dictate individual changes in the proposed programme.

'It is expected that any additional hours worked will be either taken off in lieu or paid at basic rate.

'It is vital that all employees who are working are fully utilised. Time wasting and standing around doing nothing will result in discipline and further reduction in the working week.

'As a company and with your acceptance and continued support, we are aiming to achieve a reasonable solution which will allow us to be prepared for an upshift in business when it occurs.'

Workers leaving the factory on Wednesday afternoon refused to talk on the record about the situation.

Some said they were angry but unable to influence the company's decision and were worried about meeting household expenses.

It is understood union advice is being sought.

Founded in 1974, Teignbridge Propellers is now owned by American company Mercury Marine.