YORK-based Jarvis Rail today announced it would be shedding more than 80 jobs because of a downturn in industry demand.

The Toft-Green based company has asked for voluntary redundancies in its Rail Projects Division.

The move, which will see its division of 286 staff cut by 83 positions, has met with opposition from union chiefs who say they will "vigorously defend" any moves towards compulsory redundancies.

A Jarvis spokesman confirmed that talks were being held with trade unions, including the Rail, Maritime and Transport Union, in York today about the "restructuring" of the division.

He said: "Jarvis commenced consultation with union representatives in York today by advising that the division, which currently employs 286 staff in signalling design and delivery activities, will need to be reduced by 83 employees due to a reduced workload this year and into 2005 as industry demand declines. We have been working in recent months to minimise the number of posts that will be lost." Jarvis told the unions today that it hopes to mitigate the need for compulsory redundancies by seeking volunteers, subject to the needs of the company, and to identify opportunities for redeployment.

The spokesman said: "Jarvis is also liaising with Network Rail to try to ensure that skills are not lost to the industry." Stan Herschel, the RMT's York organiser, said he was keen to ensure that any job losses were achieved through voluntary redundancies.

Mr Herschel said the union would not accept compulsory redundancies.

"If they can get it done voluntarily then fine, if there is no work to be had then there is little you can do.

"If that is undersubscribed then we would try to find people other positions within Jarvis.

"What this announcement proves is that there is no security in this industry. We have said we will vigorously defend all jobs." A Network Rail spokesman said today's announcement was a matter for Jarvis.

Updated: 16:40 Tuesday, March 16, 2004