Canada's Davie Shipyard has made another 281 workers redundant.

It blamed a lack of federal contracts, the Times Colonist daily reported.

The number of redundancies has now reached nearly 400.

And it said another 400 employees face an uncertain future, following the completion of the Asterix supply vessel for the country's navy.

It had been counting on a deal for a second ship, but this has not yet materialised.