ONE hundred and twenty jobs will be lost in Morecambe after insurer Norwich Union decided to shut its resort call centre.

The group is closing two RAC call centres as part of long-term plans to axe 1,700 jobs from the newly merged group.

The news is a major blow for the area, although staff may have the option of relocating to Norwich or Bristol.

There was no consultation with the workforce over the closure before staff learnt of their fate at 10am on Monday, claims staff union Amicus.

The union believes that the way the announcement has been handled breaches UK redundancy law - and it will be applying for a protective award for failure to consult.

"We are extremely disappointed at the cavalier approach Norwich Union has taken to the livelihoods of so many hardworking and loyal staff," says David Fleming, Amicus' national secretary.

Norwich Union, owned by Aviva, bought RAC for £1.1bn in March this year and announced immediately it would cut 1,700 posts - 900 from support divisions and 800 to be 'offshored'.

Combining the two businesses would help it achieve cost savings of at least £80m a year by 2006, it said.

The company, based on the White Lund industrial estate, was formally known as AXA until the buy out.