The unveiling of a sculpture to commemorate the history of K Shoes in Kendal was branded "insensitive" after it went on show less than a week after 76 redundancies were announced.
The covers came off the 8ft-tall sheet aluminium art work at the former Low Mills factory site, off Natland Road, which has been transformed into 26 luxury riverside apartments and houses.
But the timing of the event was criticised by workers and councillors, who said more solidarity should have been shown to those about to lose their jobs from neighbouring factories, now owned by Clarks International, of Somerset.
The ceremony was attended by Kendal Town Mayor Coun David Birkett, South Lakeland District Council officials, arts representatives and residents.
Town and district councillor Tony Rothwell, and vice-chairman of South Lakeland District Council Jean Ewing snubbed invitations to attend.
Robert Somervell, a retired K Shoes director and relative of the original Somervell brothers, performed the unveiling ceremony.
As guests adjourned indoors for a buffet, curious K-Shoes workers emerged to cast glances at the sculpture, and then began to contact the Gazette.
Tony Rothwell, a town and district councillor who works at K Shoes and is Kendal branch chairman of MSF union, criticised the town mayor for attending and said it showed a "lack of sensitivity".
He underlined that he was not criticising either developer Russell Armer, or the sculptor.
Ian Smith, a Clarks worker, said: "I just think it's totally out of order.
The atmosphere here is atrocious and this is not helping any.
It's like having our faces rubbed in it."
Martyn Nicholson, of Russell Armer Limited, which developed the site into two-bedroom apartments worth £185,000, commissioned the art work, called The Last, for several thousand pounds.
He acknowledged the recent job cuts in his address and described the current climate as a "difficult time."
But he told the audience: "I do not feel that should mean we should not remember the long history of shoe-making that Kendal has and what K Shoes brought to the town over the years."
Afterwards he said the event had been organised since Easter and they had been unaware of the imminent redundancy announcement.
Responding to criticism of his attendance, Mayor Coun Birkett said: "They have a little point do the councillors and some of the workforce, but I think on balance, the development is a good development, the town council were in support of the development itself, and we did not know about the job losses.
"I have said in the Press that I deplore the job losses and I think Clarks have failed the workforce miserably."
"K Shoes has done so much for Kendal in the past.
We are sorry it is not continuing but that is all in the hands of Clarks.
We only hope they build a stable workforce in Kendal for the future.
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