Ryanair has written to the Irish Productivity Centre demanding that it "correct errors" in its report on baggage handlers pay, or face High Court proceedings. The company contests the figures, but has told its baggage handlers that it will increase their pay in line with competitors, if the IPC study is proven correct.

The IPC carried out a comparative study of baggage handlers' pay at Dublin airport for the Government enquiry team into the Ryanair dispute. The dispute closed Dublin airport earlier this year.

In its report, the team found that Ryanair's claim that employees enjoyed better pay and conditions than their counterparts in Servisair, British Midland and Aer Lingus did not stand up in the light of the IPC figures.

Ryanair management has objected strongly. The company wrote to the Department of Enterprise, Trade and Employment seeking changes in the report because of "fundamental and manifest errors" in the section on baggage handlers' pay.

When that failed, Ryanair's legal representative, Dr Mary Redmond, wrote to the enquiry team of Mr Phil Flynn and Mr Dan McAuley, expressing concern at "manifest error(s) contained in section 3.20". This is the section dealing with baggage handlers' pay.

She said that if the enquiry team "continue to refuse to allow Ryanair an opportunity to correct the manifest error(s) in section 3.20 of the report, Ryanair will initiate judicial review proceedings in the High Court".

Dr Redmond also wrote to the IPC complaining about "material errors in section 3.20". She stated that these are "seriously damaging to Ryanair". She complained the IPC ignored all requests from the company to provide information "regarding the basis on which its findings would be computed". She concluded: "This letter is to put you on notice that if Ryanair is forced to take legal proceedings to correct these errors aforesaid, it will ask the High Court to hold IPC liable for its negligence in compiling its conclusions for the enquiry."

The chief executive of IPC, Mr Tom McGuinness, confirmed yesterday that it had received Ms Redmond's letter and it had been referred to the centre's own legal advisors. "We refute absolutely any allegations or assertions of inaccuracy in our submission to the enquiry team," he said.

IPC sources said that all the figures submitted by the four comparator companies, Ryanair, Servisair, Aer Lingus and British Midland, had been given on the basis that they would not be shown to competitors. The IPC is understood to have consulted the companies again to verify figures submitted, but the sources said it had received no request from Ryanair for additional information.

A spokeswoman for Ryanair confirmed that the company had written to the IPC and the enquiry team about these issues.