Bundaberg Sugar says it is confident it will be able to negotiate a new enterprise bargaining agreement (EBA) with its 350 employees at Bingera Mill.
A meeting with Australian Workers Union (AWU) officials yesterday failed to progress talks over the EBA.
Staff have previously voted against a proposal to allow the company to buy out one week of annual leave, which was provided to compensate for travel time.
The AWU has threatened industrial action but Bundaberg Sugar's operations manager, Ray Hatt, says the company is offering a good deal.
"How would they take industrial action when there's a 6 per cent pay rise on the table in today's environment?" he said.
"I honestly don't believe they would consider that.
"We're not trying to short-change anybody - we really are looking to get a better business."