All staff at a call centre in Stornoway have received redundancy notices.
Some 27 workers have received letters advising them that Consumer Advice Direct (CAD) have “decided to make them redundant” from the end of March.
CAD – an arm of the Citizens Advice Bureau – is competing for the renewal of a government contract. If the tender goes elsewhere, the island staff will lose their jobs.
Flora Somerville, the local Unison union branch organiser, said: “We understand that whilst discussions are ongoing regarding a further one-year contract, this cannot be guaranteed.
“Neither is it clear whether CAD would continue to operate from Stornoway should a further contract be negotiated.”
She added: “We appreciate that CAD have to abide by the legal requirements for redundancies however, we are disappointed with the insensitive tone and timing of their letter.
“The potential loss of 27 jobs from our already fragile local economy is unacceptable.
“Every effort must be made to ensure the future of the CAD service in Stornoway.”
In 2011, the call centre was estimated to be worth around £1.125million to the local economy by creating jobs and buying local services.
CAD handles consumer calls from all over Scotland and deals with hundreds of inquires each day. Regional development agency, Highlands and Islands Enterprise (HIE), invested over £400,000 in the premises with the view that the company would expand in the future.
HIE is believed to be in discussions with CAD about their intentions for the Stornoway call centre.
The call centre is now at the end of a four-year UK Government contract to provide a national consumer telephone helpline.