The Vita Cortex plant in Cork has made a payment offer to protesting staff of €1,500.
The plant announced its closure last week. Its 32 staff began a sit-in at the foam-manufacturing plant last Friday, and say they are determined to remain there over Christmas.
The employees say they are insulted by the offer of €1,500 for each employee.
SIPTU, the union which represents the workers, said the company offered the lump-sum to staff on top of last week's wages.
According to the union, the company also said in a statement yesterday it wished to remove materials and equipment from the premises.
Industrial Organiser with SIPTU Anne Egar said: "These are people who could well do with €1,500…but they found (the offer) insulting. I don't know if it was the company's intention to try to divide them. It didn’t succeed."