Staff at a hi-tech engineering firm fear their wages could be slashed by up to 40 per cent if a proposed shift upheaval goes ahead.o Bosses at Siemens Magnet Technology in Eynsham have outlined plans which could involve all 680 workers being put on a regular day shift, cutting out night and weekend working.

A further 12 team leaders' jobs will be made redundant, although they will be offered alternative employment.

One worker, who declined to be named, told the Oxford Mail: "Everyone could lose a vast amount of money. I am confident it is a bid to get rid of people without having to pay out redundancy cash.

"Siemens has started a factory in China to make magnets, so we are worried that all the work may go there eventually."

The worker claimed those on the weekend shift would lose 40 per cent of their income after the shift premium was removed, while those on the night shift would lose a third. The basic wage is about £21,000.

But managing director Arthur Kaindl said any changes to shift patterns were only proposals and "completely hypothetical" at this stage.

He added: "A very small number of people could see a change in their shift premium. We are proposing a performance based bonus where the vast majority will have the opportunity to earn more than they currently do."

Mr Kaindl said the business was strong and he had no intention of outsourcing it to China.

He said: "I feel responsible for my workforce and I want to ensure they have jobs in 10 years. But we need to ensure we set the right environment to do this."

A 90-day consultation period will take place, with input from the company's employee consultative committee.

Siemens Magnet Technology is the second largest manufacturing employer in the county after BMW's Cowley Mini plant and the biggest employer in West Oxfordshire. It makes the magnets used for magnetic resonancing imaging (MRI) scanners in hospitals around the world.

The company was formerly known as Oxford Magnet Technology and operated as a 50/50 joint venture between Oxford Instruments and Siemens.

In November 2003 Siemens paid £9.1m to take full control but three months later made 81 redundancies, blaming a downturn in the market for MRI scanners.

But a 30,000 sq ft expansion of the plant was carried out and 200 staff taken on. Then, last year, 18 jobs were axed when part of the business was moved to Germany.