A further six positions at the Bradken foundry in Dunedin are under threat, in the fourth restructuring measure since mid-2013.
Bradken made 11 staff redundant in early October, and had on two occasions implemented four-day weeks in an effort save costs and retain jobs.
Globally, the workforce of the giant Australian listed company had declined by 24%, or more than 1200 people, to 3650, during its past financial year, as heavy industry, especially mining, contracted.
In an unsigned ''restructuring proposal'' sent to the ODT yesterday, Bradken outlined that of 58 staff, six jobs were on the line, but the decreasing labour cost meant retaining a five-day week.
''We have not been able to recover our labour costs in melting, core making and aftercast ... staffing needs to be reduced proportionally to reduce labour costs,'' Bradken's proposal said.
Three jobs in aftercast and one each in melt, moulding and core making were singled out.
Bradken Dunedin makes iron and steel castings for the rail, forestry, heavy engineering and manufacturing sectors.
Bradken's Dunedin office declined to comment when contacted, saying local management were not allowed to talk to media.
It referred comment to Bradken's mining and transport group executive general manager Bradley Ward, in New South Wales, Australia.
He was not free to return calls yesterday.
The proposal said the emphasis would be on retaining staff with ''multiple skills and who have already shown a willingness to work in other areas and are reliable''.
Work in progress was continuing to drop at the current production rate, with order intakes at about 2000kg a day, which was forecast to continue through to June next year, Bradken said.
Staff consultation begins on Thursday next week, with a final decision to be announced on December 2.
