HEALTH Secretary Patricia Hewitt was today facing warnings of possible industrial action over job losses in NHS hospitals.

At the health workers' conference of the Unison union she was urging NHS staff to back the Government's reforms of healthcare, warning that the service must `modernise or die'.

But Unison general secretary Dave Prentis was telling the Gateshead conference that the NHS was being destabilised by `disastrous' job cuts fuelled by Government policies.

He was warning Ms Hewitt that his union was gearing up for industrial action to fight job losses, protect patients and challenge reforms that he said were fragmenting the NHS.

Ms Hewitt sparked anger among some health workers yesterday with her claim that the NHS had just enjoyed its best year ever.

Despite cash deficits totalling more than £600m and job losses which the Royal College of Nursing said could reach 13,000, Ms Hewitt said that in key areas - such as cutting waiting times and avoiding a winter beds crisis - the NHS was performing better than ever.

She was using today's speech to try to counter weeks of negative headlines.

She urged NHS workers not to allow the Conservatives to undermine the principle of health free to all at the point of need.

But Mr Prentis said Unison was not prepared to stand by and watch staff suffer in a `climate of fear'.