DB Schenker - formerly EWS - could be facing early spring strike action after claims by the RMT union that the rail freight company refuses to rule out compulsory redundancies.
Industrial action could have a damaging effect on companies relying on DB Schenker to provide a rail freight service.
It is understood that DB Schenker, which took over EWS last year, is to shed hundreds of jobs because of the economic downturn.
However, the union says more than 700 members will also be balloted for strike action this week due to the company's failure to lift the threat of regarding and introducing casualisation as well.
Despite the union seeking assurances on these points, RMT general secretary Bob Crow says: "On all counts the company has failed, but has instead proposed a pay freeze and possible pay cuts, as well as refusing to honour the existing pay award.
He adds: "Rather than sit down with us in a constructive way to find a path through current difficulties, the company has gone on the offensive."
DB Schenker was unavailable for comment as MT went to press.