CANTRELL and Cochrane has threatened to close its Ballyfermot, Dublin, plant with the loss of 300 jobs if strike action by SIPTU goes ahead next Tuesday.
The plant manufactures bottles and distributes the firm's soft drinks throughout the Republic.
Mr Maurice Dorney, managing director of C&C in Dublin has written to all 300 employees warning that if a rationalisation plan is not introduced immediately then equipment will be transferred to "other sites within the company".
In his letter, Mr Dorney says: "The company has no desire for unnecessary confrontation. However, given our serious loss making state we cannot accept a position which threatens the company's survival."
SIPTU is threatening strike action because the company has decided to introduce reduced wage and bonus rates for new employees and for casual staff from Tuesday.
C&C says that it needs savings of £1.4 million a year from industrial employees to maintain the plant's viability. The strike would also mean that a £4 million investment plan to upgrade the plant would not go ahead.
Ms Anne Speed, SIPTU branch secretary, says that this is the fifth rationalisation proposal and her members had already offered £500,000 in savings.
Casual staff with many years service, as well as new employees, would face cutbacks of up to 25 per cent in basic pay and bonuses if they agreed to the changes.
Ms Speed also said that SIPTU was willing to defer industrial action if the company would agree not to introduce the new bonus scheme until further talks could take place.