DETAILS of the deal that saved a printing company from closure have been revealed.

Polestar, in Severalls Business Park, Colchester, announced in January it could shut down due to difficult trading conditions, affecting 400 jobs.

Bosses reached an agreement with employees and unions in March to save £1.7million a year and keep the factory running.

It has been revealed: Employees will have to work a 39-hour week, up from 35 hours.

The salary base rate has been cut by 10 per cent.

11 members of staff have opted for voluntary redundancy.

Workers face a cut in holiday entitlement and a cap on overtime pay.

Peter Andreou, Polestar’s operations director, said: “We believe the business has a positive future.

“The factory just wasn’t generating enough profit to be sustainable.

“We didn’t just focus on the workforce, but also spoke to customers and suppliers about how we could cut costs.

“The morale has been exceptional.

“The consultation process was very difficult for the workers and their families.

“There are a few disgruntled employees, but the majority have knuckled down.”

Polestar’s Colchester branch prints materials for publishers Reed Business Information, FT Business and H Bauer, producing magazines, such as New Scientist, Farmers’ Weekly, Take a Break and Bella.

The factory has six print-presses, a bindery and more than 250 clients on its list.

It is owned by an American venture company and has its British headquarters in Milton Keynes.

The Polestar group was founded in 1998 and the Colchester branch, which specialises in web-offset printing, was opened in the same year.

Mr Andreou said the print industry remains in bad shape.

He said: “We are hoping with the Olympics and jubilee that in the second half of the year we will see a pick up.”

The firm employs more than 150 people directly and about 300 people with agency staff and contractors.

Despite a number of austerity measures, union bosses said the important thing was the factory continued to trade.

Steve Sibbald, Unite national officer, said: “It is an agreement reached with a company which finds itself in unique circumstances.

“Although Unite does not endorse this nationally, it has been agreed at chapel level.

“It keeps them alive and where there is life, there is hope.”

Mr Sibbald said he hoped workers could renegotiate their conditions if trading picked up.