The Engineering, Printing and Manufacturing Union says it is confident an Oamaru woollen mill has a strong future.
The Summit Wool Spinners plant which has about 250 employees has begun discussing redundancies, but is yet to make final decisions.
It has been reported that staff have been told 51 jobs will go.
But the EPMU denies that this number is correct, saying that talks are continuing and no final decisions have been taken.
Organiser John Gardner says the company is gauging interest from the employees in taking voluntary redundancy before meeting the union next week.
Mr Gardner is sure the plant has a positive future and is doing the right thing to adjust to changes in the wool market.