Employees at Interserve, who repair houses for Liverpool council, say they were told they would be losing their jobs when taxis delivered redundancy notices to their homes.
Some of the 63 affected staff were unaware of the cuts until they arrived for work yesterday.
Others received two letters, just over 12 hours apart, one informing them their jobs were safe, and the second saying they were being considered for compulsory redundancy.
Sid Fenlon, convenor for the Transport and General Workers Union, said: "Morale among the remaining workforce is at rock bottom and we are now balloting members for strike action.
"None of this makes any sense. We cannot meet the demands of the council and yet workers are being made redundant."
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