Bosses at steelmaker Corus proposed that workers take a pay cut to save the firm money, the Community union said.
Unions representing the 25,000 UK workforce of steelmaker Corus have rejected the firm's proposal that staff take a 10% pay cut.
But it was unclear whether the pay cut was an alternative to job losses among the 25,000 strong workforce or the closure of plants, the union added.
While the Community, Unite and GMB unions said talks would continue with Corus, they said they needed more details of the firm's plans for 2009.
Fears remain that the Llanwern site in Newport, South Wales, will close as the company make savings, costing 1,000 jobs.
With Corus saying it needs to cut costs due to falling steel sales, the impasse raises the fear of job losses.
The deepening economic downturn has hit demand for steel.
There are concerns that Corus' Llanwern facility in South Wales may close.
This site near Newport employs 1,000.
'Demanding information'
"The company's proposals for a 10% pay cut were one of a range of options which so far have been rejected by the unions," said Community, Unite and GMB in a joint statement.
"Before there is an agreement on the future of the 25,000 employees, the unions are demanding that Corus makes clear its intentions for 2009."
A Corus spokesman told the BBC that "talks were ongoing and everything is still on the table."
Michael Leahy, general secretary of the Community union, told the BBC earlier in Thursday that Corus was committed to avoiding closures and job losses, if at all possible.
"We realise that there's been a global downturn in production of steel and people wanting steel - in fact we realise there's been over 40% reduction in the order books for steel in Corus UK and Europe-wide," he said.
State aid request
Both steel sales and prices have fallen sharply since the summer due to the deepening economic downturn.
Construction and carmaking, two steel-intensive industries, are among those to have suffered.
Construction and carmaking, two steel-intensive industries, are among those to have suffered.
'Changes needed'
It had been reported that unions had come up with the plan for workers to earn less in a battle to keep their jobs.
But Michael Leahy, general secretary of the Community union, told the BBC that "any proposals which have come forward have done so as consequence of proposals that have been put by the company".
We realise that there's been a global downturn in production of steel and people wanting steel Michael Leahy, Community union
"They've put a number of proposals including a general pay cut," he added.
"They've not even suggested this is an alternative to reductions in the workforce or closures, but we know however if the order book stays as it is for a long period of time, then we know structural changes may need to take place in Corus."
Mr Leahy said that members would be informed of the range of options were on the table, adding that they and Corus were committed to avoiding closures and job losses, if at all possible.
"We realise that there's been a global downturn in production of steel and people wanting steel - in fact we realise there's been over 40% reduction in the order books for steel in Corus UK and Europe-wide.
"We've been discussing a range of possible arrangements to ensure we have a sustainable industry going ahead and protect interest of our members - they have mortgages and commitments. We didn't want a dramatic impact on their jobs or ability to earn as a consequence of this crisis."
Closure fears
Earlier this month, Corus, the Anglo-Dutch subsidiary of Indian steel giant Tata, asked Gordon Brown for UK government aid.
Earlier this month, Corus, the Anglo-Dutch subsidiary of Indian steel giant Tata, asked Gordon Brown for UK government aid.
The firm's head Philippe Varin said state help was needed to allow firms to avoid redundancies amid falling output.
The firm's head Philippe Varin said state help was needed to allow firms to avoid redundancies amid falling output.
Corus axed 500 jobs from its UK workforce of 25,000 last month.
Corus axed 500 jobs from its UK workforce of 25,000 last month.
The firm, which was bought by Tata Steel for $12bn (£8bn) in 2007, plans to reduce its European output by 30% by March.
The firm, which was bought by Tata Steel for $12bn (£8bn) in 2007, plans to reduce its European output by 30% by March.
Llanwern is one of the last remaining steel mills in the UK and employs around 1,000 people.
In addition to Llanwern, Corus also runs sites at locations including Port Talbot in South Wales, Scunthorpe in Lincolnshire and Rotherham in South Yorkshire.
Corus also runs sites at locations including Port Talbot in South Wales, Scunthorpe in Lincolnshire and Rotherham in South Yorkshire.
Earlier this year, thousands of workers at digger-maker JCB agreed to accept a pay cut to save 350 jobs.
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