Textile workers who lost their jobs when Marks and Spencer decided to source more clothing orders from overseas have been offered little prospect of direct intervention by Mr Stephen Byers, Britain's trade and industry secretary.

A call by the GMB general union for M&S to be referred to the Office of Fair Trading has been passed by Mr Byers to Mr John Bridgeman, director-general of fair trading.

The GMB believes the loss of 60,000 jobs in the textile industry in Britain and Northern Ireland over the last 12 months stems largely from a decision by M&S to make big cuts in its use of UK contracts.

The union says suppliers such as William Baird had to enter exclusive contracts with M&S, depriving workers of the opportunity to "protect their livelihoods by producing for other retailers".

M&S terminated its 30-year contract with William Baird last October.

In a letter earlier this week to Mr John Edmonds, GMB general secretary, Mr Byers writes: "I share your concerns."

But he believes that suppliers entered into contracts with M&S of their own free will.

Mr Byers will meet M&S executives next week. The GMB said officials at the Department of Trade and Industry had also agreed to see Mr Edmonds to discuss the union's call for an OFT investigation.

"Mr Byers quite clearly thinks there's a case to be answered here. Ideally we'd like M&S to face up to their obligations to their workers and make some sort of compensation," said the GMB.