MORE than 300 jobs are threatened by a supermarket chain's decision to scale down a North-East depot.

A total of 315 staff at Asda's ambient foods warehouse, in Washington, Wearside, have received "at risk of redundancy" letters.

Michael Hopper, regional organiser with the GMB union, said: "Things are pretty tense between the management and our members."

The workers are locked in a dispute over pay. Mr Hopper accused Asda of timing the announcement to influence a ballot on industrial action.

"Our members are shocked and disgusted at the way they have been treated," he said.

"The notices were issued the same day as our ballot papers."

The ballot results are due later this month.

The dispute arose after Asda offered workers a ten per cent pay rise, but only if they agreed to exclude the GMB from future pay negotiations.

The workers declined and Asda reduced its pay offer to 4.5 per cent.

Mr Hopper said the union was taking Asda to an industrial tribunal.

Asda said the pay dispute had nothing to do with the redundancies.

In total, 737 staff are employed at the warehouse, on the Pattinson Industrial Estate, with another 505 workers opposite in Asda's regional distribution centre.

The chain plans to build a 380,000sq ft depot next door, to distribute its George line of clothing.

Sunderland City Council said earlier this year that the £40m development would create 700 jobs, but Asda would only say several hundred vacancies would be created.

A spokesman said it was hoped that the 315 workers would be found other jobs in the region, either at the depots or in North-East stores.

"We have a good track record," he said.

"We issued 126 at risk of redundancy notices in Bristol earlier this year, but found jobs for every one of them."

The redundancies are part of a reorganisation of Asda's distribution system, to bring it in line with changes to the store network.

The 12-year-old depot handles about six per cent of the chain's ambient foods distribution, servicing 100 stores.

This will fall to 35 stores during the next 18 months.

Sunderland City Council's chief investment officer Tom Hurst said: "We hope that the consultation period will allow the company and trade union representatives to continue their talks and avoid any redundancies."