The Dairygold Co-Operative redundancy package under which it expects to cut 500 jobs before Christmas, has been jointly referred by the company and the unions to the Labour Relations Commission for conciliation on Monday.

Monday was the deadline for workers at the company to apply for the voluntary redundancy packages or face compulsory redundancy on December 17th. Last night the company was insisting it was sticking to that timetable.

However, union sources, said they were shocked at the speed at which Dairygold had moved giving workers only a five-day period to make up their minds.

"Having recommended the redundancy package, we feel we were bounced by the company and we are seeking to have the Monday deadline extended," said one.

"It will be impossible for all staff to be fully briefed on what they can expect in such a short space of time," he added.

A spokesman for the company said more than 100 employees had already attended face-to-face financial consultation sessions and the number was growing daily.

The local Labour Party Deputy, Mr Joe Sherlock, said there would only be a black Christmas for 500 families in the area because of the announcement.

He accused the company of "Scrooge" behaviour.

His statement came as the Mitchelstown Business Association called for immediate and positive action and consultations with all local stakeholders in the town to plan a way forward, and accused Government departments of refusing to meet local organisations to discuss the crisis earlier in the year.

"This is a devastating blow to the workers and their families and made all the more shocking because of the Christmas deadline imposed by Dairygold bosses," said Mr Sherlock

"There is a real fear among workers that the Scrooge mentality being adopted at Dairygold Co-operative is a precursor to the privatisation of the company. This must be opposed at all levels," he said.

"Despite the perception that the negotiated redundancy package is generous, many of the workers fear they will have little chance of securing comparable employment.

"The speed with which this decision has been thrust at the loyal Dairygold staff must also be questioned. This is not only a black day for Mitchelstown and Cork, but it is a black day for all of Munster," he concluded.

That view was shared by Mitchelstown Business Association which said it was "saddened and angered" by the announcement of the loss of the 500 Dairygold jobs.

Its chairman, Mr Tony Lewis said it was sad for the loyal workers who were to lose their jobs and angered at the inactivity of local politicians and the Departments of Enterprise & Employment and Agriculture.

Fine Gael's Agriculture and Food Spokesperson, Mr Billy Timmins, warned the jobs loss announcement may be the first of many in the agriculture sector.

Mr Timmins said that the Fischler proposals would lead to reductions in agricultural output, which would result in job losses in the sector and Fine Gael had been expressing this concern over a long period.

He said the Minster for Agriculture, Mr Walsh needed to bring forward proposals to assist the rural community.

The Green Party TD, Mr Dan Boyle, said the loss of the jobs would have a devastating effect on Cork county and he called on the Tánaiste and the Minister for Agriculture to outline what they intended to do to offset the job losses.