Row over 300 care staff jobs at Anheddau Cyf, north Wales
A row has broken out over a social care provider's plans to sack its 300 staff and make them reapply for their jobs.
Anheddau Cyf, which supports adults for Gwynedd, Anglesey, Denbighshire and Conwy councils, has a budget shortfall.
It is because the costs of implementing the National Living Wage and National Minimum Wage have not been met by the commissioning councils.
Anheddau said it was disappointed union Unison had lodged a formal dispute.
Unison claims staff will only be reappointed if they accept cuts to their terms and conditions.
It said offers to help Anheddau and lobby councils, MPs and AMs to try to get more funding to cover the cost of the service were rejected.
Geoff Edkins, Unison Cymru Wales regional organiser, said: "It is bitterly ironic that on the day the Welsh government announced increased funding for social care, Anheddau chose to dismiss its staff providing that care and offer to re-engage them on greatly inferior terms and conditions."
He added members were being consulted over action they may want to take.
But Brian Jones, chairman of Anheddau Cyf, said: "Anheddau is very disappointed by the way in which Unison has chosen to present what we see as a shared problem.
"We both agree that the problem is the continued chronic underfunding of the social care sector.
"We need money now. If Anheddau does not take immediate steps to reduce its wage bill it will run out of cash in six months."
He added: "We would ask the Welsh government to consider the critical lack of funding for this sector as a matter of extreme urgency."
The Welsh government said the introduction of the living wage was a matter for the UK government.
A spokesman added: "We have asked the Care and Social Services Inspectorate Wales (CSSIW) to ensure the wellbeing of people who depend on these services are not compromised in any way."