A dispute between Shannon Aerospace and members of Siptu over the employment of "production assistants" has been referred to the Labour Relations Commission (LRC), the High Court was told yesterday.

Last month, Shannon Aerospace was granted an injunction restraining Siptu from instructing its members to engage in industrial action against the company, which employs 650 people at Shannon, Co Clare.

When the case was before Ms Justice Mary Laffoy yesterday, she was told by Richard Kean SC, for Siptu, that both parties had agreed to go to the LRC "without any preconditions".

Roddy Horan SC, for the company, said it had also been agreed by both parties that the injunction should continue. This was to allow both sides make submissions to the LRC.

The injunction was granted after the company claimed Siptu had instructed its members not to co-operate with, train or assist "production assistants" recruited by the company on a contract basis.

The company alleged the instruction breached the Industrial Relations Act and agreements between the union and the company. It also represented "a very real threat" to Shannon Aerospace's ability to conduct its business properly or efficiently.

Siptu had informed the company on January 11th that an emergency general meeting of members at Shannon Aerospace had agreed there would be no co-operation with the new position of production assistants.

Siptu had denied it was involved in industrial action. However, it had complained the decision to recruit the production engineers posed a threat to the jobs of its members, and that the production assistant positions were introduced without negotiation.

The company denied that claim, insisting the assistants were recruited to fulfil contracts at busy times when the company was short-staffed.