The GMB union said around 2,500 of its members at seven JCB plants in England and Wales had agreed to work a four-day week for the next 13 weeks to help the company weather the economic downturn.

JCB has been badly hit by the downturn in property and construction. In July this year, it warned of a "rapid decline" in demand.

The union said it was "delighted" to have saved the jobs.

JCB, which employs more than 8,000 people, operates in more than 150 countries and is the world's third largest manufacturer of construction equipment. The company has ten plants in the UK.