A major showdown between the unions and Labour leadership appears to have been headed off over proposed closures of factories employing disabled people.
The future of Remploy - the factories employing disabled people - looked more secure after the government announced a £555m package to safeguard its future.
The GMB union had planned to put forward a motion calling on ministers to stop plans to close 42 Remploy factories with the loss of 2,500 jobs.
Work and Pensions Secretary Peter Hain said he had also told Remploy bosses that there would be no factory closures without ministerial agreement.
Delegates had looked set to back the move at Labour's conference on Tuesday.
Forty-three UK factories had been earmarked for closure with the loss of 2,500 jobs.
But Work and Pensions Secretary Peter Hain is expected to make an announcement that will avert a clash.
Mr Hain told Labour's conference there would be no compulsory redundancies.
Paul Kenny, GMB general secretary, told a fringe meeting at the Bournemouth conference that Mr Hain was expected to say the decision on factory closures would be taken away from the management of Remploy and given to the government instead.
He added that he was working with Cabinet colleagues to help win more public procurement contracts with Remploy to help secure its future.
That will mean we have taken out of the hands of people the ability to close factories and we will have reversed government policy Paul KennyGMB
Trade union agreement
He is also likely to outline plans for government departments to place new public procurement contracts with Remploy in an effort to keep the factories open, Mr Kenny said.
The announcement has averted a clash with the GMB, Unite and Community unions who have called for the sites to stay open and launched a nationwide campaign of marches and protests in the run-up to this week's Bournemouth conference.
He added that this would be a reversal of government policy following the awarding of contracts to overseas firms in recent years, including some where people work in "sweatshop" conditions.
It will also have headed off the threat of an embarrassing defeat for the government over the issue.
"That will mean we have taken out of the hands of people the ability to close factories and we will have reversed government policy," he said.
In a speech to the conference, Mr Hain said: "I have also made clear to Remploy management that no factory closures will take place without the agreement of government ministers.
Backing for the GMB motion in a vote would have been the only defeat for Gordon Brown during his first conference as Labour leader.
"And, whatever the final shape of that agreement, the government will provide a subsidy of more than half a billion pounds over five years - a £555m package - for Remploy to have a successful future. A figure the trade unions have also agreed.
Union bosses have defended their decision not to oppose Mr Brown's attempts to end the submission of emergency motions for debate at Labour's annual conference.
"And a categorical guarantee: There will be no compulsory redundancies for Remploy's disabled workers. Salaries guaranteed. Full final salary pensions protected as well."
Derek Simpson, joint leader of the UK's biggest union Unite, said they had wanted to avoid "a bloodbath".
The GMB is set to unveil the results of a ballot for strike action among Remploy workers in protest at the closures on Wednesday.
