Leaders of the RMT union claimed they had been assured by Transport Secretary Lord Adonis that the Jarvis staff would be “re-allocated” to Babcock Rail once Network Rail handed over Jarvis contracts to the firm.

But Babock has now said it is only being re-allocated work that would save 300 jobs at the most on the London North East renewals contract sometime next month.

Babock Rail also claimed that Network Rail said TUPE terms need not apply which means that Jarvis staff taken on by the new firm would not have to be paid their old terms and conditions.

The union is now calling on the state owned rail company to quickly clarify how it is going re-allocate contracts which would save the majority of the jobs at Jarvis which went bust eight weeks ago.

General secretary Bob Crow said: “I have asked the Secretary of State for an urgent re-convened meeting to take all necessary steps to ensure that justice is done and all Jarvis workers are immediately transferred to directly employed contracts under their old terms and conditions.

“Anything less is a betrayal of these workers who have had their wages and pension stolen from them.”