Water company cuts up to 260 jobs

The firm reported an 11% rise in profits in the last financial year

Up to 260 jobs are to be axed at water giant United Utilities as part of a business restructure.

Management at the Warrington-based firm briefed unions last week about the proposed cuts, citing the current economic climate.

But they refused to rule out compulsory redundancies if not enough volunteers come forward, the Unite union said.

The company said it was consulting with unions to explore ways of "maintaining the strength of its business".

Unite union regional organiser Eddie Hulse said that members were "disappointed" by the proposals, which are aimed at reducing costs.

Where we may have a problem is if they start compulsory redundancies - which obviously we are strongly opposed to Eddie Hulse Unite Union regional organiser

Mr Hulse told the BBC the firm had also cited falling incomes and inefficiencies to support the proposals, which members saw as a "management issue".

"It is because of their inefficiencies that they are now going to sack 260 people to help run the business better - which is illogical as far as we are concerned," he said.

"We will work with them while the people who may go, go by voluntary means.

"Where we may have a problem is if they start compulsory redundancies - which obviously we are strongly opposed to."

For the last full financial year to 31 March, United Utilities reported an 11% rise in pre-tax profits to £529.8m.

Lower bills

But all water companies are awaiting a decision by water services regulation authority Ofwat on what they can charge customers for the next five years.

The regulator is expected to tell managers to reduce bills when it delivers its ruling in November.

United Utilities said it could not comment on the level of cuts expected while a three-month consultation was ongoing.

But a spokesperson said: "We are consulting with the unions to explore how we can maintain the strength of our business given the current economic challenges.

"Our aim is to continue to deliver high-quality water and wastewater services to our seven million customers and keep their water bills low."