Rock begins talks over job cuts

Northern Rock was nationalised in February

Nationalised bank Northern Rock has begun a 90-day consultation period with unions and staff over plans to cut 2,000 jobs.

The Unite union has called on Northern Rock not to make compulsory redundancies at the bank.

The Newcastle-based company said in March that it planned to cut about a third of its staff as part of a plan to revive the bank's fortunes.

It said most of the proposed cuts would be carried out this year.

"This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimise the extent and impact of potential job losses," said Ron Sandler, chairman of Northern Rock.

The job cuts will affect all levels of staff, the bank said.

'Ultimate price'

The bank is aiming to reduce its residential mortgage lending by half as part of a plan to return the lender to private ownership.

Northern Rock was nationalised in February after the credit crisis forced it to seek emergency funds from the Bank of England.

The move triggered the first run on a UK bank in more than a century.

Graham Goddard, deputy secretary general of Unite, said that Northern Rock employees had been loyal to the bank during seven months of uncertainty.

"The workforce did not contribute to the situation which the bank now finds itself in and should not be expected to pay the ultimate price by being forced out of their jobs," he said.