Forty-two workers lost their jobs with the closure yesterday of Roscommon Precision Castings Ltd after a three-week strike at the plant.
The workers, who are members of SIPTU, recently rejected a recommendation from the Labour Court after a long and bitter pay dispute with the company.
Roscommon Chamber of Commerce has called on the Government to set up a task force to bring replacement jobs to the town. The company is the longest-established manufacturing plant in Roscommon and has employed about 40 people over the past 25 years.
SIPTU had accused the company of paying "appallingly low" wages. Mr Fintan Ferrick, a SIPTU shop steward at the plant, said the workers were "totally shocked" at the closure announcement issued yesterday evening. A meeting with the workers will take place this morning.
The managing director of Roscommon Precision Castings Ltd, Mr P.J. Naughton, said the company had had no option but to close.
He said that after a major customer was lost last August and overtime had to be cut, SIPTU had pursued a pay claim for £60 per week in addition to increases under the PPF.
After initially going to the LRC, the claim was referred to the Labour Court where it was heard in February. The court recommended the setting up of a profit-sharing scheme, but this was rejected by SIPTU. After a ballot on industrial action, the workers have been on strike for the past three weeks.
Mr Naughton said that due to health and safety regulations the company needed to buy mechanical lifting equipment costing £200,000. It was not prepared to make this investment while the "excessive wage demand" remained on the table.
Efficiency and production had suffered until the equipment could be bought, he said.