THE fight to save a North-East factory started yesterday when key figures met to try to stop the axe falling on hundreds of jobs.

Clothing manufacturer Sara Lee Courtaulds warned staff on Wednesday that the plant at Tindale Crescent, Bishop Auckland, County Durham, faces closure after losing its only major contract.

Associated jobs at the firm's operation in Peterlee, east Durham, are also threatened because the company failed to strike a deal to keep producing Marks and Spencer's Autograph range after October.

Wear Valley District Council immediately called a summit of economy experts, union officials and company bosses to help the 350 workers staring unemployment in the face.

Council regeneration officers met with representatives from the Department of Trade and Industry, employment services, Sara Lee Courtaulds and Lynn Del-Greco, cluster manager for creative industry with One NorthEast.

GMB Union regional organiser Derek Cattell was also present. He said: "We've all pledged to work hard on the main aim, which is to explore the possibility of alternative production at the factory."

Mr Cattell and the GMB's national officer, Des Farrell, will meet with Bishop Auckland MP Derek Foster at the House of Commons on Wednesday to discuss the situation.

Some staff returning to work yesterday, 24 hours after they were told their jobs were at risk, have criticised the GMB union's approach to non-members.

One machinist, who has worked at the Bishop Auckland factory for ten years, said: "Emotions are still running high and many of us who haven't joined the GMB were disappointed when we were told not to expect updates from the union or to even be considered over the coming months."

Mr Cattell said non-union staff could not expect to be subsidised by paying members but that any were welcome to join.