Workers at Harland & Wolff voted narrowly to accept a revised package of terms and conditions from management yesterday in a move which unions believe will enable the company to finalise a £400 million sterling (€678 million) order for four passenger ferries to secure its future.

But Harland & Wolff's chief executive, Mr Brynjluv Mugaas, said last night no deal had yet been struck for the ferry contract and warned no deal was finalised without a signed contract.

The revised conditions agreed yesterday, described as a "final offer" by management, were presented to more than 800 workers at the meeting in the Ulster Hall.

Despite strong union support for the deal, it passed by a mere 35 votes with many workers expressing deep frustration and anger with management.

The final result was announced almost two hours after the meeting was convened.

It showed 424 in favour and 389 against the deal.

Some 500 workers out of a total shipbuilding workforce of 1,350 at Harland & Wolff did not cast a vote.

Earlier, management issued an ultimatum to workers saying if they did not accept the terms of the deal, the company would begin to wind down its shipbuilding operation.

It also hinted to union leaders that agreement by the workforce would lead to the conclusion of a £400 million contract with a Norwegian firm, which would secure the medium-term future of the yard.

Some 1,800 staff at Harland & Wolff are currently living under the threat of a 90-day redundancy notice issued almost two months ago by management due to a lack of orders.

This was due to take effect in early June.

Under the terms agreed yesterday, skilled workers will receive a basic wage of some £310.16 per week at the yard with some possibilities for further bonuses.

They include a no-strike agreement, a pay freeze for three years and the possibility of short-time work if the company has an insufficient workload.

A controversial £50 pay cut demanded by management was dropped earlier this week.

It is understood that 350 jobs will be lost over the next few months, cutting the core workforce involved in shipbuilding within Harland & Wolff to 1,000.

Several angry workers leaving the meeting described the new terms as a "sell out" and said the result had been "rigged". Some questioned the ability of management to keep the yard in business in the long term and expressed anger at the negotiating style of management.

After the meeting, trade union leaders welcomed the deal as the best way forward for both the company and the workforce.

Mr George Matchett, a representative of the GMB union, said it was now time for the company to deliver on its promise of shipbuilding orders.

Mr Mugaas said yesterday the deal was a victory for the company and for everyone involved with the company, including workers.

"There are no losers in this," he said.

He said the new terms would enable the company to compete for contracts on a more competitive basis.

But he said speculation that management had already sealed a contract to deliver four ferries for a Norwegian company was unfounded.

He said the company was currently in discussion with a number of companies for various contracts.