Nearly 200 Tesco drivers in Doncaster are heading for strike action.
The drivers, members of Unite, were told last month that their jobs were being transferred to Eddie Stobart, which gave them 90-days' notice of termination of employment with no guarantee of employment.
Unite condemned Stobart's decision as "vicious, greedy and hypocritical, as well as delivering a body blow to the local economy."
The drivers are balloting on strike action at the threatened loss of their jobs. The ballot closes on September 12.
Unite national retail distribution officer Matt Draper said: "The scale of the job losses will be grim news for Doncaster, a town already badly hit by the government-induced recession.
"Tesco must bear its share of the blame for this, as it would have been aware that this might happen.
"We are urging the local community to get behind the drivers to maintain these jobs in Doncaster."