THE number of York jobs being shed by insurance giant Norwich Union is far higher than first feared.

In talks with city politicians yesterday, the firm revealed it was eliminating 720 posts.

Previously it had stated that 571 people would lose their jobs, but a further 150 posts are being shed, partly through leaving vacancies unfilled.

Norwich Union directors met leading City of York Councillors yesterday, along with council chief executive Bill McCarthy and representatives from Yorkshire Forward and york-england.com

Council leader Andrew Waller said the firm had agreed to appoint a senior director to remain in regular contact with the council, in a veiled admission that communication had previously been poor.

Conservative leader Ian Gillies said the firm confirmed there would be no more redundancies this year, but could not look beyond that. Coun Waller said the council would now strive to help Norwich Union stay profitable in York.

“We talked about how we could help in creating a good environment for Norwich Union to function in,” he said.

Labour leader David Scott said: “We now know that the gross number of jobs to go, including some through natural wastage and not filling vacant posts is 720.

“These are valuable jobs that will be lost from York and its economy. We have, however, had assurances that it is not expected there will be any further job losses this year.”

He said Norwich Union said the 571 figure could be reduced if redeployment opportunities could be found, and he also welcomed Norwich Union’s commitment to support those at risk of redundancy, including help from a job placement company and from Future Prospects.

Green Party leader Andy D’Agorne said: “They were very positive talks, and we want to work with them with whatever measures we can put in place.”

A Norwich Union spokeswoman said: “We are very keen to work with City of York Council, but there is nothing specific we can say at this time.”

The councillors said Norwich Union had re-affirmed its commitment that its life insurance division headquarters would remain in York in the long-term.

Andy Case, national secretary of the Unite trade union, which represents many of the affected staff, said they would welcome moves to safeguard jobs in the future.

“Any commitment Norwich Union has given or can give to York in terms of remaining a significant employer is to be welcomed.

“Anything they can do to keep redundancies to a minimum will be similarly welcomed.”