Local UK sources report that Anglo-Dutch steelmaker Corus, which is owned by Indian steel giant Tata Steel, is in talks with unions in a bid to cut costs and avoid compulsory redundancies.
The company, which employs 900 people in Corby, Northamptonshire, laid off 56 workers permanently and imposed a short working week at the beginning of the current year.
Corus is now in further talks with the unions which will lead to a May ballot of members over cost-cutting proposals.
Neither the company nor the unions would reveal what was being discussed, but the staff has voiced its concerns that the proposals could include pay cuts of up to 10 percent.
Commenting on the negotiations, a Corus spokesman said, "I can confirm our management team is in negotiations with the unions to find ways of reducing our costs on site. Until these negotiations are concluded, we cannot speculate on the outcome."