Peter Hain, work and pensions secretary, is on Tuesday expected to pledge more public sector contracts to prevent closure of factories employing disabled workers, as he attempts to head off an embarrassing conference defeat.

A dispute over plans to close more than 40 factories operated by Remploy, a government funded agency charged with helping disabled people or those with health problems to find employment, has cast a shadow over Labour’s efforts to curb damaging public clashes with trade unions at the party conference.