The future of workers at Lismore's Norco ice cream factory is under threat, the ABC understands, with casual staff to be let go and permanent staff stood down next month.
An email sent to Norco employees last month that outlines the proposed standing down or release of staff from July 15 has been circulating online.
The email says casual staff will receive a separation letter and that permanent staff will not receive pay unless they have usable leave.
Australian Manufacturing Workers Union state secretary Cory Wright said the contents of the email were correct and said the impact on the flood-ravaged town would be profound.
"That's a very important employer — they make a significant contribution to the local community," he said.
The factory on the banks of the Wilsons River was significantly damaged in the February floods and there have been questions about the future of its more than 200 staff ever since.
Support from the federal government's Northern Rivers Business Support Package for Large Business is due to finish at the end of June.
A Norco spokesperson told the ABC the company was not in a position to comment or make a statement at this stage.
Union and Norco delegates will meet on Tuesday and Wednesday next week.
Mr Wright said for jobs to be saved, state and federal governments needed to provide further support.
"We need to get government officials in and see what's possible," he said.
Federal Member for Page Kevin Hogan said he had heard about the potential losses anecdotally and reiterated his calls for the NSW government to step up to provide support for Norco employees.
The long-serving MP previously warned that businesses would desert Lismore if places like the factory were not supported.
