Workers at Cummins in Stamford will be balloted on strike action from today.
The Unite Union argues a one off £5,000 'transition' deal for workers isn't good enough.
In October they announced plans to close their Barnack Road site - threatening 300 jobs.
Although the engineering company say around 150 could be deployed to their centre of excellence in Ryhall Road.
Reporter Kathy Green has this report: