THE Belfast shipyard Harland & Wolff has threatened to cut its workforce from its current level of 1,400 to just 300 if staff refuse to accept new working conditions. The threat was revealed in a letter sent to employees in which they were invited to sign a new contract which involved longer hours for less pay.

The contract, which would come into effect at the end of this month, says that the current working week can no longer be sustained for the majority of the company's employees. It proposes what the company claims is a more flexible arrangement "where people will work and be paid in accordance with new needs".

Last week Harland & Wolff chief executive Mr Per Nielsen said that 1996 would be "a transitional period".

A spokesman said that as H&W moved into the offshore oil business, the company would require greater flexibility to cope with the peaks and troughs of production. He said that the new working conditions would bring new benefits to employees, including a guaranteed monthly salary, irrespective of the hours worked, improved holiday and sickness benefits, and a degree of flexibility in the working week.