Workers at a Walsall bakery fear they could begin losing their jobs within weeks if a row over new contracts is not resolved, it is claimed.

Around 120 out of 200 workers at Maple Leaf in Birchills are refusing to sign new contracts which reduce pay, holiday and overtime bonuses, according to the Bakers Food and Allied Workers Union.

The union says the company, which makes Harvestime sliced bread at its Raleigh Road base, has already started putting employees on notice giving them a deadline to sign or face the sack.

But bosses insist they are negotiating with employees and do not expect to have to make any redundancies.

Union official John Higgins said today: “Some of the workers have been put on a week’s notice already, there are about 17 of them.

“The company has made it clear it will terminate the employment of those not willing to sign the new contracts.

“Those who have been at the company longer get a longer notice. We are hoping it won’t come to a strike but we will support whatever the shop floor wants to do.”

The union has held a ballot over industrial action with a result expected on June 29.

However bosses at Maple Leaf say they have not had any notification of a ballot.

Maple Leaf spokesman Bob Archer said: “We have made no proposals to make people redundant and we are continuing to engage in discussions with our employees.”

The Express & Star revealed last week workers were unhappy at new pay structures being brought in at the firm, which was formerly known as Harvestime before a buyout in 2006.

A letter sent to workers from plant manager Dave Martin seen by the Express & Star warns workers: “In the event that individuals refuse to agree to the rates, the company will need to consider terminating those individuals’ employment. Our site is unprofitable and our products are uncompetitive.”

Mr Archer would not comment on the letter today.