Workers at steelmaker Corus are reported to have offered to take a 10% pay cut to preserve their jobs.
Three unions representing about 25,000 staff have come up with the proposal to accept less cash for six months, according to the Financial Times.
But fears remain that the Llanwern site in Newport, south Wales, will close as bosses make savings, costing 1,000 jobs the FT said.
The deepening economic downturn has hit demand for steel.
Construction and car making, two steel-intensive industries, are among those to have suffered.
"Representatives would accept a 10% decrease for everybody, from the bottom to the top of the company," a senior union official told the paper.
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.
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.
Even if the workers accept less pay, unions still fear the closure of the Llanwern site in Newport, South Wales, as bosses seek to make further savings, the FT said.
Llanwern is one of the last remaining steel making sites in the UK and employs around 1,000 people.
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.
Source BBC NEWS | Business |