Fox's Biscuits faces strike action at its factory in Kirkham, Lancashire, after bakers' union BFAWU today revealed it may ballot members angry at plans to slash their rights.
The decision follows a third rejection of a pay offer last week that union leaders claimed would strip members of benefits.
According to the union, the company wants to make changes including cutting redundancy payments and axing double pay on Sundays and bank holidays for the 400 workers at the site.
BFAWU general secretary Ronnie Draper told the Morning Star that the rejection of the employer's offer had shown the "inner militancy" within workers and the "strength of feeling amongst workers to protect their livelihoods.
"The company policy of driving down terms and conditions in a race to the bottom is ill conceived and unnecessary," he said.
"In a branch where we have had a great track record of industrial relations with the previous owners, we are now seeing a rise in the inner militancy of our members in response to this injustice."
A spokesman for owners the 2 Sisters Food Group said that its 3 per cent offer was "an attractive one in the current climate" and insisted it hoped a solution could still be found.
He added: "We are disappointed that our proposals on pay and conditions have been rejected, we note the significant numbers at Kirkham voting to accept the offer."
Food firm 2 Sisters has been growing rapidly in recent years, snapping up companies including Leicester pie-maker RF Brookes, which has been at the centre of a long-running dispute and hundreds and redundancies.
The firm, which racked up pre-tax three-month profits to April of £17.9m, has been accused by workers of mounting a campaign to force down pay and conditions at various sites across the country.