The UK's biggest employer of disabled workers could face strike action after union leaders dismissed a pay offer.
GMB union members at Remploy have voted overwhelmingly not to back a new pay deal, with talks due to be held later this week.
The company employs 5,700 shop floor workers in about 80 manufacturing plants.
According to the union, Remploy has offered employees an extra �5.50 a week.
But the GMB national officer Phil Davies called it a "disgrace" after the union had asked for �20 a week and a reduction in the working week.
The GMB says just because workers are disabled does not mean they are cheap labour.
They are warning if the company refuses to negotiate they will seek a mandate for industrial action.
A spokesman said the proposal which contained many benefits had originally been recommended by the union's negotiating committee.
Travel expenses
The company said it was surprised the offer had been described as a disgrace.
Mr Davies said the basic offer was �5.50 and was accompanied by a consolidation of a bonus that many people already earned.
And he said that the company's offer would see some workers lose out because travel expenses of up to �20 a week were being scrapped.
He said management had expressed interest in a one-hour reduction in the working week.
Production would have been guaranteed, but new directors lost interest in the scheme, he said.