Staff at Bombardier Aerospace in Belfast were yesterday preparing for more than 1,000 job losses after pay talks between management and unions collapsed without agreement.
The talks between Bombardier and the Confederation of Shipbuilding and Engineering (CSEU) began last week and were aimed at settling a protracted dispute over cost cutting at the firm.
The discussions broke down over union concerns on the intake of apprentices and an outstanding dispute on holiday entitlements.
CSEU district secretary Mr Peter Williamson said the union had sought resolution of these issues before progressing with wider discussions on pay and conditions.
Mr Williamson said he now expected Bombardier to embark on a "worst-case scenario" by beginning redundancy consultations immediately.
He predicted that the firm would move to close its composites plant at Newtownabbey outside Belfast as an initial cost-saving measure.
Bombardier employs some 5,700 people in the North in plants formerly operated by Shorts.
The firm has cut 1,800 jobs over the past two years. "The long term is looking extremely bad," said Mr Williamson, accusing Bombardier of "asset stripping" at its Irish operations.
The disagreement between unions and management revolves around the firm's efforts to ensure competitiveness in the increasingly tight international aerospace market.
Bombardier is calling for "pay restraint", while Mr Williamson said staff see the company's proposals as the basis of a two-tier workforce.
Employees have repeatedly rejected the company's proposals.
A spokeswoman for Bombardier last night said the "door is still open" for negotiations with unions but underlined the firm's intention to press ahead with cost cuts regardless of the union stance.
She said the firm was fully committed to its operations in the North, adding that the focus was on jobs over the long term.
Production at Bombardier has been continuing against the backdrop of industrial unrest, but this will not be sustainable for much longer, the spokeswoman said.
"As time goes by, there is less chance of keeping the contracts here," she warned, describing the situation at the Belfast plant as "urgent".
