A council's decision to look at contracting out a range of services to a private company could lead to hundreds of job losses, a union fears.

Northamptonshire County Council, in partnership with Milton Keynes Council, is to start negotiating with the company HDS.

The council is considering contracting out its human resources, information technology, finance departments and some education services.

But the union Unison fears that if a final deal is approved by councillors it could lead to hundreds of job losses.

We are here to improve things for the citizens of Northamptonshire ... not provide a cosy life for staff Mick Young, council leader

On Thursday night, Northamptonshire county councillors approved a motion to start negotiations over the contracting out of human resources and information technology at first and then other services.

On Friday, the council issued a statement which said: "HBS will now work with Northamptonshire to develop the probable 10-year contract and finalise which services will form the partnership."

'Huge opportunity'

Les Patterson, council cabinet member for finance, said: "This contract will provide the county council with a huge opportunity to free up internal resources so that we can concentrate on delivering the best possible services to our citizens."

But Nathan Birch, the political officer for the Northamptonshire county branch of public service union Unison, said his main concern was that HBS would look at cutting staff.

"When we look at what they have done with other councils they normally lose 40% of staff.

"With 2,000 workers in this present proposal that would mean 800 redundancies," he said.

Fears dismissed

Labour leader of the council, Mick Young, dismissed union fears.

"We are here to improve things for the citizens of Northamptonshire ... not provide a cosy life for staff," he told BBC News Online.

John Jasper , HBS chief executive, said: "I am delighted that HBS has been given the opportunity to work with both Northamptonshire County Council and with Milton Keynes Council over the next 10 years in what is an exciting investment-led change programme."