Twelve staff from the nursery based at the Falmer campus at Sussex University have been told that they must accept changes to their pay and conditions under new contracts or face redundancy.
The nursery is one of more than more than 40 nurseries run by the Midcounties Co-operative.
Nursery workers who were transferred over by TUPE when the Co-operative Childcare took on the running of the university nursery in 2012 stand to lose between £14,000 and £5,000 in pay cuts.
The Sussex University nursery and pre-school employs more than 40 staff and offers 71 childcare places to university students, staff and the general public.
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