Education Minister Leighton Andrews says schools will not be judged solely on GCSE performance. Teaching unions have criticised the "insufficient detail" in school reforms proposed by the education minister.
The concerns have been raised ahead of a speech by Leighton Andrews in which he is expected to urge teachers to back radical changes to the schools system.
The National Union of Teachers (NUT) said the plans were "full of vague notions and ideas that do not have enough meat on them".
But Mr Andrews said a "step-change" is needed in performance in schools.
David Evans, secretary of NUT Cymru, said he opposed in principle plans the grading plans, fearing a return to league tables which were abolished in Wales in 2001.
Dr Phillip Dixon, Director of the Association of Teachers and Lecturers (ATL), said this proposal was of "grave concern" and he would be urging that schools' grades are not published nationally.
The minister insists the new system will be different as schools will not be judged solely on GCSE performance.
Leighton Andrews Education Minister“I believe parents and pupils will welcome such transparency”
BBC Wales asked all six teaching unions whether they supported plans for school reform, which the minister delivered as 20 areas for immediate action in a speech earlier this month.
The Association of School and College Leaders said grading schools could do "more harm than good" while Welsh teaching union UCAC opposed the minister's proposal to close failing schools.
UCAC's policy officer, Rebecca Williams, said it was difficult to imagine a situation in which a school is irredeemable.
"It may need a change of leadership or other serious changes, but closing a school is a drastic and complicated business," she said.
However, unions supported some of the proposals.
The ATL said plans to tackle poor behaviour in the classroom with more training for newly-qualified teachers were "especially welcome".
Estyn found 40% of Welsh primary school children had a reading age below their actual age UCAC said it was pleased to see a renewed emphasis on pupils' literacy and numeracy, especially in the early years.
The minister is proposing national reading tests for six year olds after a re
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