FACTORY workers at struggling food brand Rosella have been given assurances about their positions in the run up to Christmas.
But there are no job guarantees yet, a union says.
Food manufacturer Gourmet Food Holdings and Waterwheel announced it had gone into receivership on Monday.
The group's interests include sauce, spice and chutney manufacturer Rosella, based at Seven Hills, NSW, Auckland-based organic soups and pre-made meals maker Pitango, and crispbreads and cracker maker Waterwheel, based in Dandenong, Victoria.
Australian Manufacturing Workers' Union secretary Tim Ayres said he was cautiously optimistic about the company's future following an employee briefing this afternoon.
"Workers have been working really hard this week to ensure that Rosella's continuing to pump out product for supermarket shelves, and the administrator's given commitments about ongoing wages and continued employment," Mr Ayres told reporters outside the western Sydney factory.
There were no iron-clad guarantees but this was the best possible news so far for the 110-odd workers in Sydney, he said.
"There's been very strong interest in the marketplace from buyers who are interested in buying the Rosella operation," Mr Ayres said.
"The administrators have indicated to the union and to workers that they are prepared to continue keeping people on at work, that they are going to honour their commitments to superannuation and to annual leave - importantly, this group of workers are still going to get their Christmas holidays."
Mr Ayres said the federal government needed to look at the squeeze effect the Coles and Woolworths supermarket duopoly had on domestic food producers.
"It's been a very tough year for Australian manufacturing," he said.
"We're in an environment now where the two-speed economy is really biting into manufacturing in the eastern states, and there's a lot more that government and the community should do."
Administrators are expected to brief the union again on Monday.