UNION bosses have hit out at news that more than 70 workers at a Preston post office distribution centre are set to lose their jobs.

In an announcement made on Monday, Consignia said that its Lancaster distribution office, based at Walton Summit Industrial Estate, will close with the loss of 73 workers at some time over the next two years.

The news comes as Consignia plan to spend three years in a cost-cutting exercise to save more than £1.2 billion in its Parcelforce Worldwide service.

Consignia chairman Allan Leighton said: "Consignia is in a perilous position -- losing more than £1.5 million every day.

"Parcelforce Worldwide is losing £15 million per month as we have failed to reduce our costs fast enough as business has declined.

"We need to renew our operations and services and halt the financial losses which put key services at risk."

Parcelforce Worldwide are set to concentrate on time-guaranteed and next-day delivery services, and hand standard parcels to the Royal Mail.

Five parcel distribution centres are set to close, and the workforce will be steadily cut from 11,700 to 5,000 over the next two years.

Consignia expect the cuts to save around £370 million a year. Staff will be offered other employment in the company, or voluntary redundancy.

The Preston centre, employing 123 people at the Hazlemere Industrial Estate, Leyland, is to remain open.

Carl Webb, regional representative for the CWU, said: "It's very difficult at the moment.

"We are willing to go into negotiations to make it a profitable company.

"We are entering into negotiations with the management and have seen the Department of Trade and Industry to make sure no changes take place without negotiations.

"We have agreed to certain things changing but from out point of view it doesn't mean all these depots are closing."

Billy Hayes, general secretary of the Communication Workers Union added: "Any attempt by the Post Office or the Government to force through redundancies will be resisted by strike action."