Employees of Shannon Development yesterday called for its board to resign or be sacked in an intensifying row over the agency's future role.

Their unions, Siptu and the National Union of Journalists (NUJ), also said they would not co-operate with changes to the company's remit.

Minister for Enterprise Micheál Martin announced last week that the agency is to be stripped of its enterprise functions as part of a new, reduced mandate.

Siptu general secretary Joe O'Flynn responded to the move by calling for the Minister's resignation, claiming he had failed to deliver on a commitment to consult unions before a decision was made.

Speaking yesterday following a joint meeting of the company's Siptu and NUJ members, Mr O'Flynn said the sense of betrayal felt by staff, many of whom had long service, was "quite startling".

Mr Martin had made it clear last week that he was acting on the basis of proposals put forward by the board, and staff now wanted the board removed.

He added that unions would be meeting Mr Martin shortly to ask him to address the concerns of the company's 170 staff about their future employment.

Shannon Development declined to comment.