Union members at the Open Country cheese factory at Waharoa near Matamata have voted to go on strike in a fortnight.
The factory is owned by Open Country Dairy which is the second largest dairy processor in New Zealand. It also has plants in Wanganui and Southland.
The Dairy Workers Union National says members at Waharoa want a collective agreement with terms and conditions of employment that are standard throughout the industry.
Secretary James Ritchie says they recognise the current difficult economic situation and have modified their negotiating position.
Compulsory mediation will be held next week.
Factory general manager Tim Slade says all suppliers have been informed of the company's position.