Paddle Pop, Magnum and Golden Gaytime maker Streets ice cream faces accusations of using "industrial blackmail" to push through cuts to staff wages and conditions.

Unilever, the multinational company that owns Streets, has applied to the Fair Work Commission to terminate an expired enterprise agreement covering factory workers in the western Sydney suburb of Minto.

Unilever, the multinational company that owns Streets, wants to terminate an expired enterprise agreement covering factory workers in Sydney's Minto.

The company said the decision was made after "careful consideration of all options to create more flexible working conditions and enhance the competitiveness and viability of the factory in the longer-term, which is ultimately in the best interest of employees and the company".

However, the union estimates the move would cut workers' take-home pay by 46 per cent, a claim Unilever said in a statement had "no basis in fact".