Signal Industries has ceased operations in Dauphin.
The supplier of road and construction signs for the province has been in operation in Dauphin for 40 years.
According to Manitoba Government and General Employees' Union President Michelle Gawronsky, the notice came as a surprise to Dauphin employees.
"When I came up to attend another union function and got a call from the staff rep that works up here, they informed us that our members were greeted at work with locked doors and a security officer when they came in to go to work... they were informed that there was going to be some layoffs, the four remaining employees were given their layoffs."
Signal Industries has confirmed that employees were notified of the closure on Wednesday effective immediately.
Spokesperson on behalf of Signal Industries, Executive Vice President of Operations for ATS Traffic James Plastow says economic factors played a role in the decision.
"There is a number of factors that went into it, but as far as giving them notice we felt that it was in everybody's best interest to pay them in lieu of notice as opposed to giving them working notice... it's been a situation that we have been monitoring some time now, but the viability of the operation was just not there due to some economic factors."
Mayor Eric Irwin was also surprised by the following decision saying, "They did really good work over there, the city actually hired them to do signs for us... it's an important facility for the community and an important employer."
MGEU says the employer has assured the union they are following the collective agreement that is in place and employees will be paid out appropriately based on their years of service.