BOSSES at the Federation Brewery have confirmed the total number of job losses will reach 170 by May, after it was revealed 68 white collar roles will also be lost.

Owner Scottish Courage is to close its Tyne Brewery in the spring and transfer production of Newcastle Brown Ale to the Federation site, in Dunston, Gateshead.

Under the merger, about 100 workers will lose their jobs.

Scottish Courage said the losses would be managed through voluntary redundancies.

However, the company said that a further 68 support roles were also being lost.

The majority of these jobs - in technical services, finance, sales and admin support - have already gone.

However, many of the remaining support staff are expected to leave over the festive period, with some finishing on Christmas Eve and others going on New Year's Eve.

Union officials said about 15 to 20 of the latest job losses were compulsory redundancies.

The company, a subsidiary of Scottish & Newcastle, said the support roles were being lost to avoid job duplication.

Steve Gibbons, from the GMB union, which represents majority of workers at the Dunston site, said: "As you can imagine, the morale of staff is very low at the moment.

"This is the worst possible Christmas present."

Meanwhile, industrial action is expected to continue at the Dunston site.

About 90 workers took part in a 48-hour strike earlier this week in a dispute over legal action brought by unions against Scottish Courage.

GMB organiser Michael Hopper said an overtime ban would remain in place at the brewery and that workers would be consulted over further strike action after the Christmas shutdown.

Mr Hopper said: "It isn't easy for workers to come out on strike at this time of year, but we have had 100 per cent backing, with not one worker crossing the picket line."

Edinburgh-based Scottish Courage, which bought Federation earlier this year, is facing a tribunal alleging it failed to consult staff over the buyout.

Bosses have offered workers a 3.2 per cent pay rise in return for a pledge from unions to drop the legal action.

But workers voted overwhelmingly to reject the offer and take strike action.