The EPMU and the NDU have negotiated a nine day fortnight arrangement at Summit Woolspinners that involves an employer wage top-up and potential for a training element.
If the application made to the government on Thursday is successful the scheme will save 57 jobs at the recession-hit Oamaru firm.
EPMU lead organiser John Gardner says the wage top-up was a critical part of the deal.
"The EPMU has made it very clear from the outset that any nine day fortnight arrangement must come with an employer wage top-up because workers simply can't afford to take another hit in the pocket.
"The company has been very good on this point and as a result we have a deal our members are very happy with.
"We're particularly pleased that Summit's Japanese owners have backed a cooperative solution to the troubles Summit is facing and have realised that workers and employers have to work together to beat this recession".
Summit is the second largest employer in the Oamaru region.