Unions at the Avonmore/Waterford group have rejected voluntary redundancy terms offered by the company after initial negotiations on future rationalisation plans.
At a meeting yesterday attended by several unions an offer of five weeks of pay per year of service was rejected and the two sides are scheduled to meet again on Thursday.
The unions, who met management in Kilkenny, will not say what level of voluntary redundancy they are prepared to accept, but the offer of five weeks was described as "considerably wide of the mark".
It is unclear whether management at this stage intends to make an improved offer.
The company said yesterday that five weeks per year of service was above the industry norm of four weeks per year.
Meanwhile, the company has refused to comment on reports it is seeking up to 700 redundancies.
A spokesman said discussions with unions were at "too early a stage" to talk about the number of redundancies being sought.
However, a figure of 700 will be required if the company is to make the £40 million in savings analysts say are necessary.
The company is considering several "mechanisms for rewarding" the improved performance of workers who are retained.
Among the mechanisms being considered is a share option scheme and a profit-sharing plan.
In addition, the company plans to establish a job relocation scheme for employees with "key skills".
Under the scheme, such employees will be able to move from a site which is closed to another operation which requires them.
Avonmore/Waterford has also announced several measures it will implement to offset the effects of redundancy.
Among them is a "job shop" to help workers prepare CVs and improve interviewing skills, linkages with Government training schemes and counselling.
The company hopes to have its rationalisation plan in place by the beginning of November, but unions do not expect final terms to be agreed at that stage.
Before the merger, unions at both co-ops were given assurances that all redundancies would be voluntary and this remains their negotiating position.
The company's deputy managing director, Mr Matt Walsh, has said that job losses will be voluntary "as far as possible".
