DISABLED workers at a Gwent factory were handed a lifeline by Work and Pensions Secretary Peter Hain.

Speaking at yesterday's Labour conference, Mr Hain announced a rescue package for disabled-employer Remploy.

Bosses had earmarked 42 factories for closure across the UK.

Its Cwmtillery plant, which employs 61 workers, was one of seven affected factories in Wales.

Workers have told the Argus they will lose everything if the factory closes.

Two of the Welsh plants were expected to merge and five - including Cwmtillery - faced the axe.

The company had said it could guarantee alternative employment for all workers.

Now speculation is growing that some of the factories could be saved following Mr Hain's announcement that there would be "no compulsory redundancies" and no closures without "ministerial agreement".

The government stepped into the controversy after unions launched a nationwide "crusade" to save the threatened factories.

This was followed by a rally last Sunday outside the Bournemouth International Centre, where the conference was being held.

GMB shop steward and worker at the Cwmtillery plant, Mandy Webb, attended the rally.

"I believe the demonstration has helped bring about this outcome," said the mother-of-two from Blaina.

"We're still waiting to see what's going to happen but at least now there's some hope.

"I am very glad the matter is in the hands of the government and not the management."

Mr Hain said the rescue package was to ensure Remploy had a successful future.

He added:"And a categorical guarantee: There will be no compulsory redundancies for Remploy's disabled workers. Salaries guaranteed. Full final salary pensions protected as well."