Around 30 disabled employees at an Exeter factory look set to lose their jobs if the operation closes down.
Unions representing workers at the Pluss factory in Sowton blame the withdrawal of funding by Devon county council - which provided 240 thousand pounds last year.
But the council says its funding is only a small proportion of the financial support Pluss receives - it also gets money from the Department of Work and Pensions to help it provide employment to people with disabilities..
A spokesman said the council has been scaling down its funding for five years and Pluss has had plenty of time to make allowance for this.
Majority of Devon MPs back assisted dying bill
Crime panel member calls for commissioner to resign
City footballers take time out to spread some festive cheer
Calls for more control over spending
Election cycle change thrown out in Plymouth
Exeter man sentenced for sexually assaulting young girl
