UP to 160 workers are set to be laid off at Southampton's Vosper Thornycroft shipyard because of problems securing new business ahead of the move to Portsmouth.

The company plans to shed the jobs from its shipbuilding workforce and 90-day redundancy notices will be issued to staff at the site in Woolston.

It comes in the wake of a fresh one-day strike today, which began at 6am, in protest over relocation terms along the coast.

Talks to avert the walkout broke down yesterday, with union chiefs pressing for a four-day working week and flexible breaks at Portsmouth so that employees can beat the rush-hour when returning home to Southampton.

Bosses at the firm have warned the industrial action could harm attempts to attract new business.

Andrew Bunney, managing director of VT's shipbuilding arm, said of the redundancy

proposals: "We regret very much having to take this step and will do everything in our power to mitigate its effects.

"However it reflects a short-term problem. We cannot remain competitive if we carry the cost of people with no work to do."

VT is still hoping to win an order to build more offshore patrol vessels for the Royal Navy as well as further ship repair or

conversion work.

But it said it was too early to tell whether it would be able to win sufficient short-term work to keep the 160 staff in employment.

It is due to relocate to Portsmouth later this year where sections of the revolutionary Type-45 warships will be built over the next decade.

Bob Stokes, regional organiser for the GMB union, said: "The work currently in progress is starting to be completed and there is

nothing for the workforce to move on to.

"We are seeking ways of reducing the impact of the redundancies and obviously some of the workforce won't want to move to Portsmouth.

"Reductions in the workforce are never welcomed by the trade union."

VT bosses said they would seek "suitable volunteers" if they decided to put the redundancy notice into effect, including those approaching retirement age.

They will meet union chiefs for more discussions in about two weeks.

Mr Bunney said: "The need to take this action is particularly frustrating when the longer-term prospects for our shipbuilding business have never been better.

"This holds out the prospect of an expanding, not a contracting, workforce over the longer-term."

A series of one-day strikes every week for the next month over working hours at Portsmouth, including loyalty bonuses for staff making the move, have been pencilled in for next month.