THOUSANDS of manufacturing jobs will be lost every month in the coming year unless there is an unexpected recovery in the sector, the leader of the TUC warned yesterday.

In his New Year message, general secretary John Monks said that the state of the manufacturing industry was his main concern for the coming 12 months.

Companies were deferring or cancelling investment decisions which could lead to the loss of 10,000 jobs every month next year.

"Some sectors such as telecoms and aerospace continue to do well," he said. "But 2001 must be a year when we finally realise the importance of a solid manufacturing base for the future of the country."

The decision to end car production at the Vauxhall plant in Luton had ended a bad year for manufacturing, which was hit by job losses week in, week out, said the TUC leader.

Mr Monks urged the Government to mount a strategy for manufacturing to help firms cope with short term problems which were "made worse" by the strength of the pound.

The Department of Trade and Industry needed more resources, and a "bolder" interventionist approach and should help firms through difficult periods.

Mr Monks said industrial relations had been "transformed" in the UK in recent years, and unions were keen to build good relationships with employers, while still taking on bad bosses.

The TUC is to launch a partnership drive in 2001 aimed at forging better links with employers.

Mr Monks added that the Government would have to move fast after the next election to start the process of joining the euro.

"The alternative is that we pay a heavy price for staying outside and then pay a heavy price for having to join far too late to have any real say in shaping the euro's future."