UNION leaders are holding urgent talks with electronics firm Circatex over plans to cut 100 jobs.

The AEEU/Amicus is meeting with management at the South Shields firm tomorrow afternoon, over the proposed job losses.

Bosses at the business are blaming an unexpected downturn in the telecommunications market for their decision to axe up to 99 staff from a total workforce of 820.

Discussions have begun with staff and unions to identify exactly how many posts will go across the plant, which makes printed circuit boards.

Mel Barras, regional officer for the AEEU/Amicus, which represents workers at the factory, said: "We are meeting with the management today over the proposed job losses.

"We will emphasise to them that they must seek volunteers for these losses, before they press people into unemployment."

The job losses will be the second time in two years that many of the 820 workers at the factory have faced redundancy.

Circatex was a management buy out from the former US firm Viasystems business, which went into receivership in September 2001.

Mr Barras added: "This is the second time that some of these workers have faced losing their jobs.

"However, this time at least they will get a redundancy package. When Viasystems folded the workers who lost their jobs had to claim statutory redundancy from the Government."

He added: "Although the business is cutting jobs now, there is still a bright future for it.

"It has simply been hit by a downturn in the telecommunications sector and needs to tighten its belt at the moment, but it could take staff back on, once the market picks up again, which is widely expected around the back end of the year."

Revisions of shift patterns are also being considered by the firm, which could lead to a drop in pay for some workers. However, some areas of the plant will continue to operate seven days a week.

Chief executive officer Charles Brooks said the decision to cut staff was "unavoidable but bitterly disappointing".

He gave a categorical guarantee that anyone facing redundancy will receive their full entitlement from Circatex which will include continuous service with the company's former owners, Viasystems, where appropriate.

"I deeply regret having to do this. Breaking the news to people is one of the hardest jobs I have ever had to do" he said. "But we have no alternative given this further fall in the telecommunications market.

"This puts the business in a stronger position going forward and ensures we can continue to provide the highest possible standards of service to customers."

Circatex provides leading edge technology products for the data communications and telecoms industry, the automotive sector, IT and consumer markets and automated industries. Its customers include Europe's largest and best known electronics companies.