More than 700 call centre workers on Tyneside and Teesside have been told to accept a 25% pay cut or lose their jobs.

Energy supplier N-Power has told staff in Newcastle, Gateshead and Teesside that it has to cut costs.

The company has told staff in the North East that it can run cheaper operations elsewhere in the country.

Union officials have warned the company that industrial action could follow.

Dave Harrison, of the trade union Amicus, said: "We are in a no-win situation.

"It may be that the mood of the people is that they wish to take them on.

"We have a series of meetings lined up with the workforce over the next week.

"My preference would be to go down the route of talking further on the basis that individuals might be able to make their own choices at the end of it."