GM Holden is asking 1,700 staff to take a two-year pay freeze to help the company save $15 million a year and remain viable.
John Camillio from the Federation of Vehicle Industry Unions has said that the workers’ futures will be based on how they vote on changes to their enterprise bargaining agreement next Friday.
"Holden has made it quite clear that if the workers reject the variation they have decided to close the operation down in 2016," Camillo told the ABC.
"There's no plan B in this one. The workers will make a decision on August 9 and if it's a no the company will close."
Holden is also seeking additional government assistance, on top of the $275 million it was given in March last year by the federal, SA and Victorian governments.
Fairfax papers reported this morning that the federal government has allocated another $300 million to assist Australia’s automotive manufacturers.