Brian Collins, 74, took sick leave with stress last week after being threatened for “stirring up trouble” over his refusal to leave the crossing he has manned for 15 years.
But parents worried about the dangers children will face by crossing the road unsupervised have mounted a social media campaign.
A petition calling for Mr Collins to be reinstated has already attracted more than 2,000 signatures and the hashtag #savebrian is trending on Twitter.
One person has even created a parody video from the 2004 film Downfall about the last few days of Nazi Germany.
Mr Collins worked for Essex County Council at Elmwood Primary School in Chelmsford, Essex.
The council sent him an email on Friday, April 29, at 6pm telling him his crossing would be shut in two weeks.
He was then asked by his boss to temporarily move to a nearby road after a colleague retired and a new crossing was installed.
He thought the offer was optional and refused because he feared for the children’s safety if there was no one to watch them cross the road.
But then he said he received a threatening phone call from someone at Essex County Council.
Mr Collins suffers from depression and had to retire early from his job as a lorry driver because of it.
He was too distraught to speak about the situation so his wife Joan Collins, 69, spoke on his behalf.
She said: “The most annoying thing is that they’ve found someone to man the crossing Brian was supposed to go to.
“When his manager asked him if he wanted to move to the nearby crossing he thought it was just an offer and he didn’t want to move.
“But then he received this threatening phone call and he’s incredibly distressed about it.
“He went to the doctor and they immediately signed him off sick. He’s got a history of depression and the council know that.
“The road where he worked is much busier than the other one. Two buses go through it, cars park along it and it’s the main road to get the to the train station and convenience stores.
“We’re terrified an accident could happen if it stays unmanned and we hope the council will reinstate Brian.”
Hundreds turned out at the school to support Mr Collins on his last day on Friday (6/5).
Mr Collins, a father of three, took the job as a lollipop man because it gave him something to do and he built up a fantastic rapport with parents and children.
And he would take the job “back in a heartbeat” if he was reinstated, according to his wife.
Mrs Collins, a retired administrator, said: “We went to see our MP John Whittingdale on Friday and he is going to take up our case with the county council.
“We’re also still compiling the petition and (local) Councillor Norman Hume is going to present that to the council when it’s finalised.
The couple are unsure whether the attention has helped or hindered their cause.
Carol said: “The attention brings the issue to the forefront I guess, but it keeps us stressed and feels like we’re under the microscope a bit.
“At our age, we just want to get on with our lives.
“I’m very worried about Brian’s health because he really loved that job, even if it was only 45 minutes a day.”
One of the people to sign the petition, Callum Andrews from Chelmsford, said: “When I was a pupil at Elmwood Primary School I always walked to school and when I approached Brian the lollipop man he was always nice and caring towards everyone he greeted.
“He always has a smile on his face, and would check the road carefully before letting anyone cross. He is a great lollipop man and without Brian it just wouldn’t be the same.
“So if they kick Brain out there will be 2 busy areas with no lollipop man to help people cross safely . So please, please help save Brian.”
Councillor Ray Gooding, Essex County Council’s Cabinet Member for Education and Lifelong Learning, said: “All of our school crossing patrols are prioritised according to national guidelines.
“The school crossing patrol officer in Hullbridge Road is being redeployed to cover a vacancy at the school’s other crossing in nearby Ferrers Road, which is a higher priority site.
“Arrangements will be reviewed again once a new pelican crossing is installed in Ferrers Road.”