A union spokesman says workers at Bluegrass Station Army Depot in Lexington are picketing over unfair labor practices.
Bob Wood of the International Association of Machinists and Aerospace Workers told the Lexington Herald-Leader that workers are being asked to take a 30 percent to 50 percent pay cut. About 170 workers went on strike at midnight Tuesday.
The facility provides supplies for U.S. Army Special Forces.
Wood says the union hasn't seen the contract between subcontractor AllSources Global Management and Lockheed Martin that mandates reclassification of employees to a lower pay grade.
Lockheed confirmed that negotiations had broken down but had no other comment.
AllSource Global Management CEO Randy Groth confirmed the new contract would mean at least a 30 percent pay cut for workers.
Meanwhile WKYT TV reports that a picketer was injured at the site early Thursday morning. The victim was taken to the hospital. His current condition is unknown.
Groth said negotiations are expected to begin again after a cooling-off period.