The government is terminating the existing contract with the community providers.
SIPTU members working in jobs clubs around Laois and Offaly are to ballot for stike action.
It's in response to the government's decision to terminate its contract with existing not-for-profit, community-based providers.
The trade union says the Department of Social Protection's decision to replace it with a private company will leave all staff involved unemployed by the end of the year.
SIPTU's Adrian Kane says it's too late to save the jobs, but other alternatives should be looked at: