More than 1,000 insurance workers in Croydon face an uncertain future as they wait for the outcome of a huge merger negotiation, writes MARCUS THORNLEY.

Insurance giants Commercial Union and General Accident are in the process of hammering out a £15 billion merger which will see at least 5,000 jobs axed. Unions are bracing themselves for staff losses - and Croydon is unlikely to escape the redundancies.

Assistant general secretary of the Commercial Union Staff Association Steve Nutting told the Guardian: "A number of different functions exist in Croydon and some of these are likely to be merged."

Commercial Union currently employs more than 1,000 staff in Croydon, with General Accident about 100.

Mr Nutting revealed that there was "unquestionable concern" among some of his Croydon members as to where the job cuts would fall.

The growing globalisation of the insurance markets has meant that news of a merger was not unexpected. But the manner and size of the job cuts have yet to be determined.

Mr Nutting added: "We believe we will get a fair and equitable selection process that looks at skills, previous performance and future potential.

"We aim to minimise compulsory redundancies over a manageable period."

Lucy Anderson from the Manufacturing Science and Finance Union, which represents many General Accident employees, stressed: "We don't want compulsory redundancies. We want meaningful consultation."

Anxious employees must wait until the summer to discover if their jobs are secure.

Meanwhile, General Accident has pledged to keep its staff informed of developments.

"The company has a clear determination to make sure communication with employees is a priority," said a spokesman.

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