First Union boss Robert Reid says the jobs situation will continue to worsen and he has been in talks with at least two large companies on the brink of receivership.

There'll be crisis talks today over redundancy packages at the Summit Wool Spinners plant in Oamaru. Sharon Solomon works at the plant and is a delegate for First Union - she says they're still sorting out exit-details.

Sharon Solomon, an operator and delegate for First Union, said last week she was "pretty devastated.

First Union and the EPMU are seeking legal advice as they are ''concerned'' over redundancy payments for some Summit Wool Spinners employees.

"Everything in Northland is in a holding pattern," First Union Northland organiser Garry Hetherington said.

Rotorua's First Union spokesman Rawiri Daniels said tough economic conditions had severely limited growth in local industries and cut into job opportunities.

Unions suggested that a drop in part-time work could be leading more people to leave the workforce.