Air New Zealand is scheduled to meet with the Service and Food Workers Union later this week to discuss the company's plan to outsource much of its ground service work.

The airline has already held talks on the issue with the Engineers' Union. Jill Ovens, union spokeswoman for the food and service workers, says outsourcing would see quality suffer and staff loyalty plummet.

"What we've proven with our submission is that it isn't worth their while to outsource. The business case just doesn't stack up."

Ms Ovens claims staff morale is already at an all-time low.