Minister for Defence Willie O'Dea has called on parties involved in the dispute at Shannon company Element Six (formerly DeBeers) to attend talks at the Labour Relations Commission (LRC) "without any preconditions".
The dispute centres around terms of redundancy for 207 workers who will lose their jobs at the plant.
The company is offering just 2½ weeks wages for every year of service, on top of the two-week statutory payment.
While some 150 workers who accepted a redundancy deal last January received eight weeks for every year with the company, the latest deal has been capped at one year.
Siptu and TEEU members have already balloted for strike action.
Last week, UK-based chief executive of Element Six Cyrus Jilla circulated a letter to staff in which he threatened that the company would have to review whether it could afford to fund pension liabilities if industrial action was taken at the plant.
In a statement issued this afternoon, Mr O'Dea, who is TD for Limerick East, said "dialogue is the only method by which these jobs can be saved."
"I urge all parties to engage in dialogue without any pre-conditions at the Labour Relations Commission. It is vitally important for the workers and management as well as for the local and national economy that talks get underway without delay."
"I have met with all sides in this dispute but today I urge all parties to start talks at the Labour Relations Commission. There is everything to be gained," he concluded.