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Unions are urging ministers to set up a multi-billion pound fund to subsidise workers' wages in a bid to help British industry.
The unions claim that taxpayers' money should be used to keep people in jobs by subsidising their wages and paying for more training for employees.
The call comes as the Engineering Employers Federation predicts that over 140,000 manufacturing jobs will be lost this year.
And Stephen Alambritis of the Federation of Small Businesses told the BBC that the scheme could keep skilled employees involved in viable firms.
Alambritis denied that the scheme could lead to failing businesses being kept afloat by government despite their lack of success.
"The FSB, along with the Trade Union Congress, in talking to the government will vouchsafe for the viability of the business," he said.
"Any business that applies for a wage subsidy for its staff that it doesn't want to lay off but may have to without the subsidy must be a viable business. All the checks and qualifiers are in place."
"The winners would be based on commercial investigations by a series of bodies including the FSB, TUC and the government," he explained.
"This is for viable businesses that are concerned, that want to keep on their skilled staff."
Alambritis said that the government should provide a short-term wage subsidy of up to 60 per cent of the median wage in addition to training investment.
He claimed that the government could save 600,000 jobs in three to six months of the scheme.
And Welsh Assembly Government deputy minister for skills John Griffiths told the BBC that a similar scheme is already in place in Wales.
The Welsh 'ProAct' scheme is designed to keep people in employment, Griffiths said.
"Firms are in considerable economic difficulty in this economic downturn and we offer training and wage subsidy," he explained.
He also denied that there is a risk of supporting a business that is not sustainable.
He said that Welsh ministers uses a viability test that is determined by a panel which considers funding applications from businesses.
"Those are an objective test to make sure that companies do have a strong future over and above the problems that the economic downturn presents," he said.
"It isn't a matter of picking winners. It is just ensuring that companies do have a strong and viable future – if they can be given a bridge through these great economic difficulties we currently face."
But he admitted that the scheme was only at the "very early stages" in Wales.
"We have some £11m committed thus far covering some 3,500 employee," he said.
"The big majority of companies that have come to us, have come to us with very realistic training plans. Firms have very realistic expectations of the help available."
Dods Parliamentary Communications Ltd