Yazaki Samoa, which employs 740 workers, said it would be closing before the end of 2017.
RNZ reports Yazaki general Manager, Funefe'ai Oliva Vaai, said a final package would be paid out to employees when the closure happens.
But employees who decide to resign beforehand will miss out.
Uelese Tupuola said members of his association and company management are holding discussions on how best to move forward.