The ATGWU and British Midland ground handling staff have rejected an invitation by airline management to go to the Labour Court for further talks.
Last week, the company reached an agreement with union representatives on a transfer package following the sale of its ground handling operations to Gatwick Handling International.
This was endorsed by the Labour Relations Commission but rejected by workers.
The package included retention of all employees by GHI, a once-off payment, transfer to GHI's pension scheme, retention of British Midland travel concessions and current pay package.
Mr Jill Nealon, Director of British Midland Personnel said, "We are naturally disappointed that our offer of further talks through the Labour Court has been rejected. We have been willing to discuss a means of resolving this dispute through the Labour Court."
Meanwhile SIPTU members of Aer Lingus' cabin crew have voted in favour of strike action by 95 per cent.
Strike notice will not be served on Aer Lingus until the situation is reviewed after talks with management due to take place at the Labour Court this weekend.