A union claims proposed redundancies at Telecom contractor Transfield are due to the telecommunications company playing contractors off against each other to drive prices down.
The Engineering, Printing and Manufacturing Union says Transfield announced on Tuesday it is considering axing 121 field managers and staff, and designers.
A brief statement by Transfield says the telecommunications industry is undergoing significant change and the company needs to adapt to stay ahead.
But the union is calling on the Government to step in to ensure New Zealand's telecommunications network is sustainable.
Workers for other Telecom contractors have been taking industrial action over moves to make them independent contractors or be paid piece rates.