UNIONS yesterday urged Northern Rock not to make compulsary redundancies as they began talks with the troubled bank.

Talks began on the day Northern Rock confirmed plans to make 2,000 employees - one third of its workforce - redundant, most of them this year.

The Unite union said it expected the bank to honour staff members' terms and conditions of employment.

The bank's chairman, Ron Sandler, yesterday delivered the HR1 redundancy form to the Department for Business Enterprise and Regulatory Reform.

An HR1 form is legally required by the Government when a firm proposes redundancies of more than 20 employees. It triggers a 90-day consultation with unions about the job cuts.

A copy of the HR1 form was also submitted to Unite, the main union representing the bank's workers, and other employee representatives.

The level of job losses and the fact the majority will happen this year came as no surprise becaue they are the same as outlined in Mr Sandler's provisional business plan for the bank, published on March 31.

The likely start date for any potential job losses has not been set, but will be agreed during the course of the consultation period.

However, the bank confirmed that the job losses would affect "all levels of staff".

Unite's deputy general secretary, Graham Goddard, said: "If downsizing goes ahead Unite will be demanding that Northern Rock give a commitment to no compulsory redundancies.

"The workforce did not contribute to the situation which the bank now finds itself in and should not be expected to pay the ultimate price by being forced out of their jobs."

Mr Sandler said: "This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimize the extent and impact of potential job losses."

A task force, the Northern Rock Response Group, has been set up by businesses and local authorities to help people made redundant.