Almost 800 workers at aircraft maintenance company Shannon Aerospace, one of the midwest's largest employers, have been placed on protective notice.

The move comes as the company's workers consider taking industrial action. The company has warned that "any industrial action will undermine the company and the livelihoods of everyone who works in Shannon Aerospace".

Last week, an overwhelming 91 per cent of the almost 800 workers at the airport-based company voted in favour of industrial action including strike in pursuit of the final two phases of Sustaining Progress due since 2005.

The company has confirmed plans to remove previously agreed entitlements in an effort to offset costs, which it says it is entitled to do. A company statement issued yesterday said: "Due to a substantial reduction in workload, the company has no option but to issue protective notice to all its staff".

The uncertainty generated by the threat of industrial action has resulted in a decision by customers to withdraw three aircraft scheduled for maintenance and to make alternative arrangements to conduct that work elsewhere.

There has been some suggestion that this may mean there may soon be no work available in the facility and temporary layoffs may be required. The necessity and timing of such action would be determined by industrial relations developments and customer reactions over the coming days and weeks.

The company spokesman continued: "Employees have been advised that any industrial action would impede the company's ability to meet its contractual obligations to customers and could have serious implications for the company's future. In the first instance the company will endeavour to minimise the impact on employees and its business by making the best possible use of its time and attendance systems."

The statement further warned: "The situation at Shannon Aerospace is very serious and is not sustainable. The company remains open to discussion with the union."

Siptu adopted a different tone: "Shannon Aerospace has been a very profitable company throughout the last six years with profits of between €1.19 million and €12.58 million each year since 2000. Staff believe it is outrageous that a company which is in the healthy state shown by its accounts should seek to, in effect, reduce the pay of the people who create that profit."

In July, the Labour Court recommended that both sides meet in an effort to resolve the issues. However, to date, according to the union, the company has offered nothing that would satisfy workers. The Labour Court also accepted the findings of an independent report that outlined the potentially dangerous financial position faced by the company if work practices did not change.