WATER and electricity giant United Utilities today stunned workers by announcing 1,700 job losses in the North West.

And the firm, formed by the £1.8 billion merger of North West Water and Norweb, said it was selling off its chain of Norweb shops which employ more than 100 in East Lancashire.

Furious union leaders said they would be balloting for industrial action if any of the job cuts were compulsory.

Workers were already taking action today over a dispute involving new personal contracts.

North West Unison official Joan Fletcher said staff were 'furious' about the news.

"We asked at the time of the merger that it should be referred to the Monopolies and Mergers Commission because it wasn't in the best interests of the region's economy and this announcement proves it." United Utilities, which employs 14,000 in the region, is already in the process of shedding 800 jobs throughout the organisation.

Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union, said the job losses were "devastating".

"When North West Water took over Norweb they painted a rosy picture for the future. Instead they have turned out to be asset strippers breaking up a successful company for short-term gain.

"Our members have delivered massive profits for these companies and some have accepted pay freezes for the last three years. Their reward is to be cast aside and sold to the highest bidder."

The city reacted favourably to the news with United Utilities share price racing ahead by 19p.

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