THE government is being urged to intervene to prevent collapses in the retail sector having a `devastating' domino effect on jobs.

The Rail Maritime and Transport union warned of a knock-on effect which could hit road freight and other transport jobs.

General secretary Bob Crow said: "If an enterprise the size of Woolworths is allowed to collapse, it will be a disaster for its employees, but it will have a domino effect which will also threaten jobs in the transport and road freight sector and way beyond. We have 300 members working for Wincanton under contract to Woolworths whose jobs are under immediate threat, but there will be thousands more if there is not direct intervention.

"The government has spent billions of taxpayers' pounds on shoring up the bankers and credit merchants whose greed caused the credit crisis, and ordinary working people have the right to expect direct intervention to save the real economy.

"The government has broken a taboo by nationalising banks, and if they can put financial institutions under state control, then it must surely be right to take whatever steps are necessary to stop the real economy melting down."

His comments came as administrators continued to sift through the wreckage of Woolworths.

Deloitte is seeking a buyer and has received approaches from `a number of parties' over the 813-store chain and the firm's E.UK wholesaling arm.