A CABLE company in the North-East has laid off more than 120 workers.

Staff were shocked after AEI Cables cut almost two fifths of the workforce from its base in Birtley, near Chester-le-Street.

Workers, some of whom had been with the firm for decades, were last week given no notice and told to go, a day before many were due to head off on holiday.

Union leaders now say they plan to take the company to court for failing to consult them about their redundancy plans.

GMB regional organiser Micky Hopper said he had had no indication AEI was in trouble until he was called to a meeting at the end of last week.

Mr Hopper said: "Only last month we were talking with the company about the pay settlement for this year and there was no indication anything was wrong.

"Then we were called to a meeting on Thursday morning and the company told us they’d gone into voluntary administration.

"They said they were cutting 126 jobs, leaving 200 staff remaining, and hoped that would keep creditors happy.

"We weren’t consulted on the redundancies and when we asked how they were picking individuals they wouldn’t say."

Throughout Friday the affected staff were notified they no longer had a job and told not to return after a week-long factory shutdown.

No-one at AEI Cables was available for comment.