WORKERS at a doomed North-East call centre could be thrown a lifeline, after it emerged that two companies have expressed an interest in buying the site.

The Lloyds TSB contact centre in Newcastle is scheduled to close at the end of next year, with the loss of about 980 jobs.

But The Northern Echo has learned that two companies, both from outside the financial services industry, are interested in running other call centre operations from the building.

It would not mean a direct transfer of employees from one company to another, but would put the Lloyds workers in a good position to take any new jobs.

A spokesman for financial union Unifi, which represents the threatened workers, said: "We are aware that there have been some expressions of interest about buying the site as a going concern.

"We will be encouraging Lloyds to take that option up if possible, as it would provide a great opportunity for our members.

"At the moment, it is only a possibility and would not, in any case, mean a straightforward transfer for all our members, as unfortunately these companies would not be taking on the same work."

A spokeswoman for Lloyds TSB declined to comment.

The centre, which opened in 2001, is due to close as call centre jobs are moved to India, where employment costs are much lower.

Yesterday, strike action planned by Newcastle workers in protest at the move was called off after the bank agreed that there would be no compulsory redundancies.

The deal means that every worker at the centre will be offered an alternative job with the company, or voluntary redundancy.

Unifi will recommend that the workforce accepts the offer.

Its national officer, Bernadette Fisher, said: "Hopefully, the offer will make people at the centre more relaxed and enable them to take control of their lives again.

"I think workers will still be very upset about the closure of the centre, as they do care a great deal about it and have worked extremely hard to make it efficient."

A spokeswoman for Lloyds TSB said the bank would redeploy the 980 staff within the group and in the region.