A DRUGS firm last night pledged not to inflict any further job losses on its North-East workforce.

The promise came as GlaxoSmithKline (GSK) announced a £1.2m aid package to help 400 workers due to be axed at its plant in Barnard Castle, County Durham, over the next three years.

Local MP Derek Foster said he had been assured by the head of GSK's global manufacturing operations, Tim Tyson, that this would be an end to the restructuring at Barnard Castle and there would be no more job losses.

It has not been decided which departments will be hit by the cuts. But 50 workers have already opted for voluntary redundancy while others have expressed an interest.

The cash aid is designed to soften the blow of the job losses, which are blamed on last year's merger between Glaxo Wellcome and Smith-Kline Beecham. The factory, Teesdale's biggest employer, has a current workforce of 1,500 and the cuts will have a substantial knock-on effect on the local economy.

Mr Foster met GSK officials yesterday and later issued a joint statement with the company's European supply director, David Pulman.

The cash will be used to retrain displaced staff and support other economic development programmes.

Mr Foster said: "I would rather have had the 400 jobs of course, but I'm very pleased that Glaxo have responded with this substantial package, which will help us to create many jobs in Teesdale and to retain the existing staff."

He added that he expected a mixed reaction to the pledge of no more job losses from Teesdale families. "I would expect them to react with a mixture of pleasant surprise, but sceptisicm too.

"They will probably say, 'we'll believe it when we see it'. But knowing Teesdale people as I do, they're very resilient and as soon as they realise this is a real deal, they'll pick up the ball and run like hell."

A consultation process begins on Monday and further discussions are planned with local organisations on the exact nature of the support.

Mr Foster said: "What happens next is that further consultation will take place between management and staff to make sure that the redundancies are handled in the most sensitive and efficient way.

"We also have to consult with Durham County Council and Teesdale District Council to see the best way of starting up a body to oversee the spending of this money.