The row is about changes to the Civil Service Compensation Scheme - the redundancy package for civil servants.

BBC: Analysis: Combination of cuts could be explosive

He said unions would again meet management on Thursday to discuss details of a redundancy package and get more details on the closure of the factory.

BBC: Talks over textile firm closure

"I hope the redundancy package will soften the blow for the workers but work will be gradually phased out before the end of the year, " said company spokesman David Clarkson.

BBC: Redundancies begin at factory

Mr Atkinson said the city council city had prepared a support package for the staff who face redundancy.

BBC: NEWS | UK | England | North Yorkshire | Terry's plans to close York site

City of York Council said it had prepared a support package for the staff who face redundancy and would be discussing the issue with management at the factory.

BBC: NEWS | UK | England | North Yorkshire | Terry's closure 'will hit city'