NEGOTIATIONS are continuing between union officials and bosses at a factory in Durham where 60 jobs are facing the axe.

It is the second blow to hit Mono Containers, after 35 workers were laid off at the end of last year.

The firm says the cost-cutting exercise is as a result of losing a major contract with German yoghurt giant Muller.

Thirty-six employees have said they are prepared to consider voluntary redundancy.

Regional officer for the Amicus union Gerry Hunter met with workers and bosses on Dragonville Industrial Estate to discuss the job losses.

He said: "We think we will know in the next two weeks whether we are going to get any more volunteers.

"We are trying to reduce wherever possible the need for compulsory redundancies."

Machinery is being moved in to a warehouse while the company condenses its operations.

Any compulsory redundancies are expected to be announced by the end of May.

Mono Containers chief executive Mike Davey said the firm wanted to maintain making containers for the food industry in Durham. He said: "We have been working hard to get more business, but it is a very difficult market. These situations are never particular easy but the business is losing money and you have to react."