BOSSES at an East Lancashire firm which employs hundreds of disabled workers have hit back at union claims over directors' pay.

Earlier this week the GMB union attacked top bosses of Remploy for enjoying pay rises of 13 per cent and for the company's soaring company car bill at a time when it was looking to merge a number of its factories.

But Remploy, which operates sites in Blackburn and Burnley, said the claims were "pure mischief". Remploy said that actual increase in directors' pay had been three per cent and that figure the GMB had used had included pay for a new post of sale and marketing director which it said was needed to increase the firm's commercial strength.

And it said the increase in car costs was due to the company's decision to lease cars rather than own them and that the unions had not taken into account the fact the company was saving money by leasing.

"We deeply regret the distress that these baseless stories are causing to our employees as well as the fact that they are undermining our commercial standing," said Ken Taylor, Remploy's finance director.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.