THE PROBLEM-plagued manufacturing industry received more bad news yesterday after union leaders predicted more job losses.

The Manufacturing Science and Finance (MSF) union warned of more redundancies in the sector over the next year unless interest rates are cut.

It urged the Bank of England to respond to fears of a manufacturing "meltdown" when it meets this week.

Early returns from a survey of chief executives across the UK showed that small and medium sized companies expected a tough time over the next year, especially with exports, unless rates were cut.

Further job losses would be a "certainty" unless the present six per cent rate started to fall, the union said.

MSF general secretary Roger Lyons said: "Our members whose jobs are under threat are united with their employers in demanding a cut in interest rates.

"Thousands of jobs in manufacturing are at risk from excessively high interest rates and the over-valued pound, which has risen by 30% against other European currencies since the MPC took over control of interest rates.

"Retail sales are down, the housing boom has cooled, and inflation is low. Even the monetary policy committee must see it's time to cut the interest rate and save jobs in industry."

The full results of the MSF survey of executives will be published at the TUC Congress in September