BLACK & Decker's North-East plant was saved from closure with only 24 hours to spare by a massive Government "sweetener", The Northern Echo can reveal.

Bosses at the US company confirmed yesterday that 950 jobs are to go - but an 11th hour deal saved another 450. The company had planned to shut down the plant in Spennymoor, County Durham, in a move that would have put 1,400 people on the dole.

After weeks of frantic negotiations between Black & Decker and One NorthEast, the regional development agency, the company relented at the 11th hour.

But even a Government aid deal could not convince the company to keep full production at the plant which manufactures DeWalt power tools.

Yesterday 550 permanent workers and 400 staff on temporary contracts were told they will lose their jobs by the end of next year.

Production is being transferred to a new plant in the Czech Republic where workers earn far less than the average £4.50 per hour paid in Spennymoor.

The plan, revealed in The Northern Echo yesterday, delivered another devastating blow to a town already reeling from a series of high-profile job losses.

Last night, as Government agencies and local councils pledged to work together in a bid to find jobs for those workers made redundant, angry staff accused the company of selling them down the river for cheap labour abroad.

One worker, who asked not to be named, said: "We have bent over backwards for Black & Decker. They asked for productivity improvements - we gave them 40 per cent.

" They asked for staff loyalty - the factory has never lost a day to industrial action in 37 years. And how do they repay us? They ship production abroad where people will work for peanuts."

Although news of the job losses came as a shock to the workforce, talks have been going on for weeks.

Mark Lloyd, chief executive of the County Durham Development Company (CDDC), said last night: "We were faced with the potential closure of the whole plant. We fought to convince Black & Decker's corporate headquarters in America to save some jobs and the outcome was in doubt to the very last moment. Even yesterday, we didn't know whether or not we had succeeded."

Prime Minister Tony Blair, whose Sedgefield constituency is close to the factory, said it was a "tragedy" for workers.

Unions attacked the company for treating staff with "contempt" and called on the Government to give new rights to workers to be consulted.

The transfer of products to a factory in the Czech Republic will begin this month and is due to be completed by the end of next year.

The company said the redundancies would be achieved through a voluntary redundancy scheme and "where necessary" compulsory cuts.

Barry Bloomer, plant manager at Spennymoor, said the factory would continue to play an important role, adding: "We will maintain our manufacture of motors and components for plants around the world and will remain the home of European purchasing, supply and reconditioning operations."

One NorthEast refused to give details of the financial help it had offered Black & Decker. A spokesman said: "We have done everything within the limits of our power."

However, The Northern Echo understands that under the terms of the deal, which still has to be formally ratified, more than £1m in taxpayers' cash will be used to buy back one of the two production facilities on the Spennymoor site. This will then be turned into an enterprise area for small businesses.

Money has also been made available to help retrain the remaining 450 staff. In return, it is understood One NorthEast received an undertaking that the plant will continue for at least five more years.

Durham County Council - via the CDDC - and One NorthEast is also putting cash into a programme to help the 950 redundant workers find new jobs.

Jonathan Blackie, regional director of the Government Office North East, said: "We do not underestimate the impact this news will have. However, some of the high-skilled, high quality jobs are staying at Spennymoor and this must be welcomed."

Bishop Auckland MP Derek Foster said: "This is a body blow for Spennymoor."

Derek Simpson, general secretary of Amicus, said: "Black & Decker has treated workers with contempt, first by refusing to give unions access to the plant and now by sending their jobs overseas."

It also emerged that news of Spennymoor's fate had already broken in the Czech Republic earlier this week. The company started production at its new plant at the beginning of the week. It has also recommended its existing UK subcontractors relocate close to its Czech plant.

The Spennymoor downscaling will have a huge knock-on effect on scores of firms in the region.