NEARLY 500 Burnley Michelin workers will be laid off for a week later this month -- following a downturn in demand from Europe and North American markets.

In addition, there will be less work in future for scores of workers signed up to variable contracts allowing management to cut the number of shifts they are guaranteed over a one year period from 206 to 150, from June 17.

The closure of the Bancroft Road factory will operate from June 22-26 just two weeks before the annual Burnley Fair holidays.

A management spokesman said the moves were in response to weaker sales demand in parts of Europe and North America.

Employees and Transport and General Workers' Union representatives had been kept fully informed of the development and the need to reduce truck tyre stocks , he added.

The move follows a similar "extended holiday" over the Christmas period.

The spokesman said Burnley was the only Michelin group factory involved and various options existed for staff to minimise the reduction of earnings as a result of the announcement -- including workers coming on to the site to carry out cleaning and service work and to opt to take credit days holiday owing them.

Factory manager John Lancaster, said: "We regret having to take this action but it is essential in order to avoid stocks moving out of control.

"The downturn in the North America truck tyre market is now having an impact on the European market and we must respond in order to protect our business." No union spokesman was available for comment, but a worker said: "We had an idea this was coming. It is one of those things we have to live with."

The factory,opened in 1960, specialises in the production of truck and bus tyres for the UK and export markets, notably Europe and North America.