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Hundreds of agency workers at Jaguar’s Castle Bromwich plant are said to be facing the axe – a month after the company announced a £450 million investment programme.

Letters have been handed out to Manpower agency staff at the site announcing the scrapping of jobs on the XF and XJ lines, despite plans for a new £320 million aluminium body shop.

The investment marks the largest single cash outlay at Castle Bromwich in its history – but it is not enough to save the jobs of agency workers hoping for regular contract work.

The letter handed out by Manpower to agency staff states: “Following a significant period of intense launch activity at Castle Bromwich, Jaguar Land Rover have informed Manpower that the company is now to introduce a normalised production schedule to support its build plan for the coming year in line with normal industry practice.

“We are therefore writing to you to advise that unfortunately your Manpower assignment at Castle Bromwich is likely to end before you become eligible for a short-term contract with Jaguar Land Rover.

“Based on current plans, the majority of Manpower employees at Jaguar Land Rover will be reassigned from the assignment at the end of May and October 2015.”

Jaguar Land Rover spokesman Ken McConomy said: “These people were brought in over the last 12 months to help with the launch of the new XF, the new refreshed XJ and the F-Type.

“They were brought in on the premise that they were required for a short time. This is normal industry practice.”

He was unable to confirm reports that between 700 and 400 agency staff had been handed letters. “There will be some agency staff left but I do not know the numbers.”

But a shopfloor source said: “The Manpower official has been handing out letters to agency staff. They are being stood down, although there are opportunities to go to the new engine plant at Wolverhampton.

“ It is a great shame after all the positive news of the last few months.”