The Tánaiste, Ms Harney, has expressed her "shock" at the closure of the Square D electrical manufacturing plant in Ballinasloe, Co Galway, with the loss of 385 jobs.
She pledged to "use every facility" at her disposal to encourage alternative investment in the east Galway town. The Labour Galway West TD, Mr Michael D. Higgins, said Ms Harney's "crocodile tears" were not enough. The Fine Gael senator, Mr Ulick Burke, claimed that the Tánaiste and the Minister of State for Agriculture and east Galway TD, Mr Noel Treacy, knew about the firm's impending closure three months ago. The trade union SIPTU, which represents the majority of the company's workforce, has called for the decision to be reversed, and has questioned the firm's justification for the move.
"This is the US parents bringing the work back home," said Ms Trish Gibbons, SIPTU official. She said it was a repeat of the AT Cross closure in the town over two years ago, with the loss of 200 jobs. The union is due to meet the company's management today.
Three representatives from the North American division of Schneider Electric informed the staff of the closure yesterday and said employment would be reduced on a phased basis between March and June of this year.
The Ballinasloe plant was established in 1971 and its staff of 385 are involved in manufacturing electrical circuit breakers, sold primarily in North American markets.
The company said the decision reflected "significant change in market demand for circuit breakers, resulting in overcapacity in the group's North American division manufacturing operations". Apart from Ballinasloe, the division also makes circuit breakers at facilities in Iowa, Nebraska, Missouri and Mexico.
The company said that over the last two years the division had relocated around 300 jobs to Mexico. Mr Robert P. Fiorani, vice-president of communications at Square D and Schneider Electric in North America, said: "We very much regret the market forces that have resulted in the decision to close our Ballinasloe facility, not least because of our very positive relationship with our employees located there and a very positive experience with Ireland as a manufacturing location."
Employees are being offered five weeks' severance pay per year of service, in addition to statutory redundancy. The company said that it would work with IDA Ireland, and assist employees to find new jobs and to provide outplacement assistance and job search training, as well as advice and information on company-paid benefits.
In a statement Ms Harney said the closure was "a body-blow for the workforce, their families and the local community. My thoughts are first and foremost with them on an awful day like this".
The Boart Longyear group has announced it will close part of its manufacturing operations in Shannon due to a worldwide decline over a number of years for specialised hard-material products. The tungsten carbide division will close in April, with a potential loss of 40 jobs.