TELECOMS group BT is spending £11.4m on converting three of its call centres in the region into next-generation sites.

The move is part of £100m investment by BT to create a network of 30 multi-function contact centres.

The sites will cover a range a services for residential and small business customers.

But the plans will see 53 call centres, including two in the North-East, close within two years, with the loss of about 2,200 full-time jobs.

The group said there would be no compulsory redundancies, and workers who wanted to stay with BT would be offered alternative posts.

In the North-East, the new centres will be in Middlesbrough, Newcastle and Sunderland, while the two sites to close will be the direct inquiry centre in Marton Road, Middlesbrough, and the billing operation at Bridge Court, in Newcastle.

Staff affected by the closure of the Marton Road operation will move to the next-generation site at Dundas House in the town, while staff at Bridge Court will be redeployed to Salters Lane, in Gosforth.

About 2,100 BT and agency staff are currently employed at the five sites in the North-East included in the review, with Gosforth the largest with more than 1,000.

The move follows an announcement last month that BT was reviewing the future of its call centre operations.

Patricia Vaz, BT Retail's managing director of customer service, said the plans would affect almost everyone in the call centre operation.

She said: "We are totally committed to manage these changes sensitively and professionally and in line with specific principles agreed with the unions."

The cuts will take the number of full-time posts in the call centre operation to about 13,600 by the end of March 2004.

Ms Vaz confirmed the job losses would be part of the previously announced figure of 13,000 across BT Retail.

The first closures will take place in October.

Ms Vaz said: "In close consultation with the unions, we are exploring every possible avenue to ensure that most people can be relocated to next-generation sites within travelling distance.

"Where that is not possible we are looking at alternative options across BT Group, including non call-centre work."

Union bosses said they were not convinced that BT could offer reasonable alternative job opportunities for staff in the sites it has chosen to close.

Jeannie Drake, deputy general secretary of the Communication Workers' Union, said she wanted guarantees that comparable jobs would be made available.

She said: "The introduction of these changes will, in many cases, cause enormous problems for members, their families and their communities.

"We believe the company has obligations to its people which it cannot ignore. This is a huge company with social obligations."

BT call centres take 2.3 million calls a day, including 1.5 million to directory inquiries and 90,000 emergency calls.