The Bishop of Cloyne today called on Greencore to pay redundancy to its former workers.
In an unprecedented move, Dr John Magee spoke out in favour of the 145 families affected and urged the company to adhere to agreements made in 2004.
Bishop Magee, who recently met with a delegation of former workers from the Irish sugar factory in Mallow, Co Cork, said he now fully understood the facts of the case.
The plant, which closed in May, is situated in the Diocese of Cloyne and most of the workers are resident in the diocese.
Former employees from both the Mallow are Carlow plants are waiting for the company to pay the severance terms recommended by the Labour Court.
"As we approach Christmas, 145 families find their futures in jeopardy due to the intransigence of this company in refusing to abide by the Labour Court ruling," said Dr McGee.
"This situation cannot be morally justified.
"I strongly endorse the Taoiseach's statement in the Dail, that the company should honour the recommendations of the Labour Court and pay redundancy under the terms of the 2004 agreement."
The Bishop also appealed to all concerned to bring this matter to a just and acceptable conclusion so that the workers and their families can move forward in security and peace of mind.
The company has come under fire since it unveiled an ambitious €1.1 billion development plan for its site in Carlow on November 21st.
It plans to transform the 333 acres former sugar factory lands in to Carlow Gateway - a regeneration scheme which will include 3,000 residential units, retail facilities, a 50-acre business park and a 35 acre riverside walkway.
Greencore says the scheme, which has submitted to Carlow County Council for its proposed local area plan for the town, will create more than 2,000 jobs in the area.