UNIONS put forward a plan yesterday to save Remploy factories employing disabled workers and warned of industrial action if closures go ahead.

Remploy wants to shut 28 plants employing more than 1,600 workers after removing 15 from its original closure list earlier this week.

Their scheme would see the closure of both the Aintree and St Helens sites while the Central Cutting Unit in Wallasey would be shut and merged with the Birkenhead factory.

But trade unions said none of the factories should close and argued they could be expanded if the senior management team at Remploy was replaced.

Paul Kenny, general secretary of the GMB union warned that a ballot for industrial action was "inevitable" if management’s plan is accepted.

Work and Pensions Secretary Peter Hain will decide within the next few weeks whether to accept Remploy’s proposals.

He will meet union leaders today (Thurs) to discuss their suggestions which include getting rid of 120 senior managers.

Mr Kenny told a news conference there were more levels of management at Remploy than at any other organisation in the country.

"In over 30 years of dealing with the public and private sector I have never seen such a badly run and mismanaged operation.

"Remploy has let down the workers, the taxpayer and the Government."

Mr Kenny said trade unions had come up with plans to save money and generate new work.

He complained that Remploy had "wasted" £140,000 on an office in New York which he said had not produced any contracts.

The unions said there was scope to make £20m a year of savingswhich included shedding getting rid of layers of "expensive and unnecessary management".

Mr Kenny added: "We want the Secretary of State to give us a new management that we do not have to drag kicking and screaming to develop a vibrant Remploy for the 21st century."

Mr Kenny accused Remploy of deliberately running down the business which he described as an "absolute scandal".