FINTRADE Technologies Ltd has admitted that production is to cease at its factory in Priory Road, Strood.

But by this afternoon the company had still not issued redundancy notices to its employees, who have been laid off since October and have not been paid.

Until they are declared redundant, the men cannot sign on for benefit. And they are prevented from seeking jobs elsewhere for fear of losing redundancy money.

Fintrade management was due to meet Barry Chapple, of the employees' union Amicus, this morning. But they called off the meeting at the last minute, claiming that employees at the factory gate displayed "extreme hostile actions and attitudes" against management the previous week.

"We have been treated like criminals and this is not constructive to the business of discussing the future of the company and the employees," they told Mr Chapple in a letter.

But Mr Chapple described the employers' failure to turn up for the meeting as "cowardly".

"The employees were in reasonably good spirits today because they were hoping for news that would enable them to get on with their lives," he said.

"Instead they are still in limbo. The company has implied in a letter that they are going to cease trading, but they have not said when.

"They have not issued redundancy notices, although they say they will be issued shortly."

In the letter the company's directors admit Fintrade has been suffering financially for years. It adds: "We have reached the point of being forced in finally closing down production in total.”

The letter goes on to say that the company may be heading for insolvency problems soon unless additional capital could be made available.

Its bankers had made it clear they would not increase facilities or allow the company to exceed its present limits. However the banks were prepared to allow the directors to informally wind down the affairs of the company under their supervision.

"We have come to only one solution, that of ceasing production totally," the letter states. It is signed by the company chairman Alan le Roux and director Paul Merritt.

About 150 employees were laid off on October 31 when the company claimed it had been unable to arrange employees’ liability insurance. At the time they were told the layoff would be on full pay. But they claimed on Wednesday they had not received a penny.

"All we want is a letter to say that we are redundant," said Darren Edwards, of Strood, who has worked for the company nearly 20 years since leaving school.

"I'm married with four children and life is very hard just now, with no money coming in.

"Many of us have had to arrange reduced payments on mortgages, cut out luxuries, and extend overdrafts. It's seriously disrupting our lives."

Another employee Tony Devine said: "I've just got £100 to do Christmas with. Obviously that will go on the children. Fortunately my father has promised us a turkey as a Christmas present, but it's a bleak prospect for the New Year."

Electrical technician Greig May said: "Everyone has been down to the job centre to find out what they're entitled to. They can't sign on until they leave Fintrade. But they can't leave or they'll lose their redundancy pay.

"They're taking away a man's capacity to earn a living."