Workers at Galtee Meats in Mitchelstown, Co Cork, have been asked to agree to cut their pay to a standard rate of €9 an hour, with the elimination of all overtime, to retain their jobs, it was claimed yesterday.
Siptu has described as "draconian" the proposals issued by the company on Tuesday.
Under the proposals there will be one standard rate of €9 an hour, with employees who currently earn more than that rate having the choice of retaining their existing rate or moving to €9 a hour and receiving a lump sum.
The proposal says if agreement is not reached with Siptu members, the company will seek to sell Galtee Meats.
Under the agreement overtime is to be eliminated, and all jobs are described as "interchangeable and flexible".
Compensation packages are also being put in place, with all employees set to receive a lump sum of €1,000.
Siptu regional secretary Gene Mealy said yesterday employees were being placed in a very difficult situation.
"As far as we are concerned, these proposals are draconian. The alternatives to these proposals are very stark for our members. But ultimately, our members will make the decisions on these proposals, and we are having a general meeting next Thursday, where the proposals will be considered. These are very severe proposals."
One worker, who declined to be named, said he was worried that if the proposals were accepted his pay packet could be halved.
"Even losing 10 hours a week overtime could cost you over € 300 a week, so it is a real cause of concern for us. It is devastating."
Chairman of Mitchelstown Business Association Tony Lewis said he feared the situation was never going to improve in Dairygold/Galtee Meats. Workers were in effect being asked to put up with a 25 to 33 per cent reduction in wages or face the loss of their jobs.
"We were told that we were going to have a bright future in Mitchelstown, but the bad news keeps coming. Everyone is entitled to a proper day's pay. I really don't know where the company is going with this. We need to protect these workers."
Cork East Labour TD Joe Sherlock said workers at the plant were "demoralised".
He urged Siptu to use all of its resources to fight the new proposals to avoid the collapse of a business of such vital importance to the area.
A spokesman for Galtee Meats confirmed yesterday that proposals had been put forward to the union for consideration.
However, he insisted management's intention was to make the company a profitable one, guaranteeing the plant's existence. The aim was to change work practices to maximise productivity, and make the company a viable competitor.