UNION bosses hope the future of a major civil service site in the region can be safeguarded, but admit that ongoing job cuts are hitting hard.
The Department for Education and Skills (DfES) revealed last May that up to 100 positions at Mowden Hall, in Darlington, were to be lost.
The move was part of a radical shake-up of the department that will see 1,400 jobs nationwide shed over a four-year period.
In the first wave, 800 jobs will be cut, the second will involve shedding a further 600 between 2006 and 2008.
That announcement sparked concern among the Darlington workforce that the entire site, which is occupied by about 590 DfES staff, could be shut.
But the Public and Commercial Services Union (PCS) has received assurances from Education and Skills Minister Ruth Kelly that there will be no compulsory redundancies.
PCS Darlington branch secretary Terry Hegarty said: "That would lead us to believe that they won't shut the site, as there would have to be compulsory redundancies if they wanted to do that.
"I'm very hopeful on that front, but it's still a slight concern."
Many workers have already been lost at the site and Mr Hegarty said that could have a serious impact on services.
The Darlington office plays a crucial role in child protection procedures and student grants, as well as providing the main information technology support for the department.
It is understood that an outside company could soon be brought in to handle the student loans.
The DfES insists there are no plans for closures of sites in the foreseeable future.
Mr Hegarty said: "There have been job losses, but there is no reduction in the workload or initiative drives from the department."
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