Burberry workers and GMB union officials met with Fayed for lunch at the Knightsbridge department store yesterday and said they felt 'very encouraged' by the outcome.
GMB spokesman Mervyn Burnett said: 'Mr Fayed has lifted the spirits of all workers in the factory. He came round and had a chat with everyone. He is very keen to keep textile production in the UK and wants to manufacture clothing here. If we can get help from him and other retailers, we may be able to save up to 100 of the 300 jobs.'
The workers have support from the Welsh Assembly, the Welsh executive and the local council to set up a co-operative to save 60 to 80 jobs. Fayed has said that he might be able to award supply contracts to help kick-start the business and has also discussed setting up a company with the workers.
The union said that Fayed will be visiting the Welsh factory very soon, along with his merchandise director, to discuss proposals in more detail.
According to the GMB, a number of retailers and entrepreneurs considering launching brands have also shown interest in the factory.
Last week, Burberry gave staff at the south Wales factory loyalty bonuses and allocated£1.5 million, to be donated over 10 years, to a trust fund. The offer amounts to a multimillion-pound improvement on the initial settlement. The deal also means that the factory, which Burberry has donated to the workforce, will be left intact.
The GMB said that Burberry had also committed to placing some manufacturing orders at the newly formed co-op factory, if it does go ahead as planned.
A task group set up to save the factory will meet tomorrow to discuss the outcome of yesterday's meeting.
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