Talks on the future of Sealord's fish factory at Nelson are to resume on Monday between management and the Service and Food Workers Union.
Unless it can cut costs by $1.8 million per year, Sealord says it may close the plant and process fish aboard factory trawlers instead.
The company is seeking changes to wages and conditions in its collective agreement with the union.
However, the union says the proposed cuts would reduce weekly wages by $70.
It says the negotiations, which began last year, are set down for Monday and Wednesday.