Two factories employing 360 people in counties Kilkenny and Donegal are to cease production shortly while their multinational owner reviews its worldwide operations.
In Co Kilkenny, the Comerama textile mill in Castlecomer, which employs 160 people, is to close on December 6th. Workers at the mill have been on a one-day week for the last two months.
A sister plant in Bunbeg Industrial Estate in Co Donegal, employing 200 workers, is to cease production on Sunday.
Both are owned by an Asian conglomerate Indorama Inc, which has its headquarters in Thailand . It is currently carrying out a review of its worldwide operations. The results of this review will be implemented early in the new year.
Workers have been told that there is no guarantee that either factory will reopen next year.
The Castlecomer workforce has been called to a meeting in the plant today at 2 p.m.
It is understood that the managing director of both factories in the Republic, Mr Michael Brooke, met the Tánaiste, Ms Harney, last Friday. The details of the meeting have not been disclosed.
A survival plan to keep the workers in their jobs until June 2003 has been drawn up. Kilkenny's four TDs will put the proposals in the plan to Ms Harney today or tomorrow.
Deputies Phil Hogan (FG), Seamus Pattison (Lab) and John McGuinness (FF) and Junior Agriculture Minister Mr Liam Aylward (FF) last week met representatives of both management and unions at Comerama and came up with the survival package.
"With Government help, Comerama could remain open until next summer, at which time management hopes a sufficient level of orders should have built up to sustain the jobs," Mr Hogan said.
He is seeking a meeting at the earliest opportunity with the Tánaiste.
"This is a devastating blow, coming as it does before Christmas," he said.
Workers in Comerama have been told by the management that production costs in Ireland for yarn and wool are six times higher than in India and Pakistan, where the bulk of the operations are located.
It is believed that a worldwide slump in demand for its main products, Treira wool and Lycra yarns, is responsible for the crisis.
There was further bad news on the jobs front in Co Donegal yesterday when it was announced that 74 jobs are due to go on December 20th at the Ruibear Motair plant on the Gweedore Industrial Estate in west Donegal. It is the biggest industrial estate in any Gaeltacht region.
The automotive firm, which employed over 200 people at its peak and which was regarded as a flagship industry for the region, has experienced difficulties for some years. In April, workers got a reprieve when a contract was secured from Ford, but the plant will cease operations next month.
Local Fine Gael TD Mr Dinny McGinley met the Tánaiste, Ms Harney, yesterday to discuss the worsening jobs crisis in west Donegal.
Meanwhile, in Kiltimagh, Co Mayo, one of the west of Ireland's oldest bakeries has gone into liquidation with the loss of around 40 jobs. Macks Bakery stopped production on Tuesday evening after almost 130 years of continuous operation.
Macks, which manufactured a range of bread and confectionery, was one of the biggest employers in the region.
There were 32 full-time jobs in Macks Bakery and another 12 people were employed as driver agents for it.