WORKERS at the Remploy factory in Huddersfield have an uncertain Christmas - following the likely loss of a major contract.
The factory at Waterloo employs 77 staff making car headrests for vehicle manufacturers like Toyota, Volkswagen, Nissan and Peugeot.
But French firm Treves, which sub-contracts the work to Remploy, said it intends to switch production to eastern Europe to cut costs.
Treves said it wanted to transfer the work by December 22 - hitting 180 employees at Huddersfield and at Remploy factories in Derby and Jarrow, on Tyneside.
Remploy bosses have joined forces with trade unions to fight the move.
A spokeswoman for Remploy said: "We are committed to fighting the loss of the business. We are still negotiating with Treves to try and persuade them to change their minds.
"But this kind of thing is happening right across UK manufacturing. We are not immune to it."
The spokeswoman said Remploy had a policy of no compulsory redundancies.
"Whatever happens, we would not be making compulsory redundancies," she said.
"We have an employment service arm to help people to find jobs in mainstream employment.
"We are also trying to find alternative work for the factories and we have intensified our sales activities to secure future business."
Remploy is the UK's largest employer of people with disabilities and receives £110m a year government funding.
It has about 80 factories across the UK and also helps people into mainstream employment.
Earlier this year, ministers ordered a review of the funding levels.
The Government believes Remploy should be providing better value for taxpayers' money and steer more people into mainstream work.
A spokesman for general union the GMB said Remploy workers at the three factories were very worried by the threat from Treves.
"It has come at a very bad time, given the government review," he said.