But a spokeswoman for the company “vehemently denied” the claims and said consultation continued, with no decision made.

CWU Victorian secretary Joan Doyle said Australia Post plans to move mail sorting to Dandenong would lead to at least 10 job losses, and up to 30 job cuts if parcel processing also moved.

“They’ve indicated that they want to seek expressions of interest in redundancies in the first week of November and let people go on January 26,” she said.

“We’re still agitating for the minster to intervene on the issue.

“In the first stage they’re probably talking up to 10 people.

“If they take the parcel sorting away as well it would be 20 staff in the new year.”

The union and Member for Bendigo Lisa Chesters sent 100 letters back and forth to check postal services.

Ms Chesters said the results showed the business was almost meeting benchmarks but said mail did not arrive on time on some days.

“If the service was to get worse we believe it will be very hard for local businesses to rely on Australia Post,” she said.

“It is passable right now, but I think Australia Post needs to increase the hours at the Bendigo mail sorting centre, not cut the hours.”

Ms Chesters will meet will company representatives in her office next Monday.

She said the issue was not a case of union scaremongering as the company had suggested.

“At the end of the day this isn’t just about job losses, this is also about an inferior postal service for people living in regional Australia,” she said.

“It will make it together for our counterparts to compete with Melbourne and that does nothing to improve or enhance our opportunities for local businesses.”

Australia Post did not provide comment except to say the company “vehemently denied” the claims and said consultation continued.