Unions were celebrating after plans to merge a Bradford factory for disabled people with one in Leeds were shelved.
But Steve Morris, Yorkshire region organiser for the GMB, said the battle would continue to improve conditions at the Remploy factory in Barnard Road, Bradford.
Remploy is the biggest employer of disabled people in the country.
Its Bradford branch with its 40 staff was under the threat of merger with its Leeds counterpart as part of a national shake-up of nine of the company's factories.
Remploy had promised there would be no redundancies but many workers said they would find the journey to Leeds impossible because of their serious disabilities.
But after negotiations with workers' unions and local authorities, the company announced yesterday plans for more job opportunities and refurbishing its factories.
Mr Morris said: "It is great news for everybody involved in the campaign to save the factory in Bradford."
Phil Davies, national officer of the GMB union, said: "This is fantastic news. We consider this is a major breakthrough. Both the company and the Government now recognise the importance of factory employment for disabled people."
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