Some staff will be offered jobs in branches

Lloyd TSB is closing its call centre and moving the work to India, with the loss of almost 1,000 posts.

But the union Unifi, which represents the majority of staff involved, has said there will be no compulsory redundancies.

A union spokeswoman said staff had been offered jobs at another call centre in Sunderland and at branches of the bank.

The union has now suspended a planned ballot on industrial action.

'Christmas present'

In a statement Lloyds TSB said it would "offer a job to anyone in the Newcastle Contact Centre who wished to remain in the employment of Lloyds TSB".

Unifi is recommending members accept the new offer.

A union spokeswoman said: "We are delighted that the bank has made this offer.

"This is the best Christmas present staff will get.

"There is now no reason why any member of staff needs to face the dole in 2004.

"It shows that when union members stand up for themselves they can persuade employers to do the right thing."

The result of the consultative ballot will be known by 19 December.