Staff received letters from the council last Friday setting out whether their positions were being transitioned to CLM or being made redundant.
Northern Amalgamated Workers Union Inc organiser Robert Popata said 10 of the 38 jobs at the complex were being axed.
He said affected staff who decided not to transition to CLM had the option of full redundancy.
Popata said staff were still reeling from the council's decision and "hundreds" were expected to support them when they marched to the council Thursday next week. He said the hikoi was being timed for the last council meeting of the year as a show of support to the staff and to express their strong wishes for the council to change its mind about the job losses.
He said those taking part in the hikoi would go into the council chambers if no one met them outside.
"They are having a public meeting after all ... we want council staff and councillors to see the people who are being affected by their decisions," Popata said.
"We are hoping the Rotorua community gets on board with us too."
Council operations group manager Henry Weston said 28 lifeguards and swim tutors had been offered roles with CLM at the same pay rates as they currently received and with similar contract terms and conditions.
He said the council was working with 10 other permanent staff and their union on options for them.
"They all have the opportunity to apply for positions with CLM and we are hopeful a number of them will be successful.
"Redundancy will be a last resort although that is also an option they can take up if they do not wish to apply for roles with CLM or be redeployed."
He said staff would be paid their normal wages by the council until the end of January and any redundancies would take effect from February.
Weston said the council was required to review all its services and the decision to outsource was made to improve the service.
All current services and programmes – including learn-to-swim and water safety programmes – will continue and at the same prices.
"It's CLM's intention to increase revenue by providing more services and programmes, and increasing the number of people using the facility."
He said CLM had a good record of working with communities and providing additional facilities and features and introducing initiatives such as youth programmes.
Weston said the council was aware a hikoi was planned and it respected people's right to express their views.
"However we haven't been contacted by the organisers at this stage so don't know what they plan to do or what they expect or want when they arrive at the council."
CLM chief executive Craig Carter said the company was committed to taking on most of the staff and on their existing pay rates.
"Our dialogue with the council is continuing with the aim we will work in collaboration with them. Once we take over the management we plan to hold some community days and hope Rotorua residents will come in and tell us what they want from their aquatic centre."
- Additional reporting by Katee Shanks