Telecom Fiji Limited has offered voluntary redundancy to all its 1,500 employees.
The offer is part of the proposed restructure of the monopoly company which wants to shed 500 workers as it prepares for lower telecommunications tariffs to be announced by the Commerce Commission soon.
Telecom Fiji is offering each employee a fixed sum of three months' pay plus two weeks pay for each year of service.
Its employees have rejected the offer.
The general secretary of the Fiji Posts and Telecommunications Union, Attar Singh, says they want a fixed sum of two years' pay, no outsourcing of Telecom operations and no forced redundancies.
Mr Singh says industrial action will be considered if there is no satisfactory resolution.