The decision to close Irish Ispat is irreversible following the breakdown of talks between the Tanaiste, Ms Harney, and Indian-owned company Ispat International in London yesterday.
Ms Harney met Ispat International chairman and chief executive Mr Lakshmi Mittal at company headquarters to discuss cost-cutting proposals which would have included redundancy for close to 50 of the 400 employees at the plant. The meeting was also attended by Mr Ken Foley, a senior industrial relations officer with the Labour Relations Commission.
The Minister for Enterprise, Trade and Employment expressed disappointment at her failure to save the Cork steel-making plant, saying she had to accept the decision was final.
Ms Harney added she did not believe "anything the workers did could save the plant". The company had informed her that it was losing £750,000 (#952,303) a month and the cost base in Ireland was much higher than in many other European steel facilities.
Ispat International said last night that, despite listening to concerns, it believed there was no viable way forward for the plant.
Ms Harney said: "This is a devastating blow to the workforce and their families and the priority now is for Government to ensure the availability of alternative employment in the area."
SIPTU's regional secretary, Mr Joe O'Flynn said he was bitterly disappointed with the company's decision to reject the union package.
"The rescue package which was put together by shop stewards was absolutely unprecedented, and went way beyond what any group of workers would normally be expected to give."
Management had already rejected a union plan where workers would forgo wage increases in July and October, with £2.9 million savings over 21 months.
Ms Harney said she had arranged for FAS to get in touch with the workers to determine available skills and arrange training, where necessary.
The Minister said workers at the plant would not be left without a pay packet as they will receive money from the Department of Enterprise, Trade and Employment's social insurance fund.
Mr O'Flynn said the company must have had its mind made up at an early stage that the plant was going to close, adding that it was absolutely disgraceful the company had decided to walk away at this juncture.
"They led us up the garden path over the last few days, giving us the impression that there was some glimmer of hope. We made stringent efforts to save the company. If that is their response, the gloves are off. We intend to maximise the benefits to workers from this company."
A creditors' meeting will take place on Thursday. Ispat is said to owe £36 million to its creditors and claims to have invested £24 million in the plant since buying it in 1996.
A general meeting of union members will take place today. Ispat International acquired the Haulbowline plant, formerly known as Irish Steel, in May 1996 from the Government for a nominal sum of £1.
The deal was made with Ispat on condition that it would invest £30 million in the plant over a period of five years.
