Aviation company Lufthansa Technik Turbine Shannon has issued protective notice to its 150 staff. It follows the rejection by SIPTU members of a management proposal concerning redundancy and pay. Around two-thirds of the workforce at the Clare plant are SIPTU members.

The proposals were put to the union's members on Tuesday following what management has described as "extremely difficult and protracted negotiations". The talks have involved three Labour Court recommendations, which have been accepted by the company, and the appointment of a jointly agreed basis of independent mediation in an attempt to resolve all outstanding industrial relations issues at the company.

A major fire at the plant on June 20th forced a halt to production for almost 20 weeks. The blaze extensively damaged an area at the rear of the facility.

According to the company, the majority of staff continued to receive full pay, including shift premiums although on leave.

Lufthansa is blaming that fire, along with escalation in labour costs and depressed trading conditions in the aviation industry worldwide for losses of €2.5 million, which it suffered in the past year. A spokesperson for the company's parent, Lufthansa Technik, said yesterday that it was "reviewing the viability of the Shannon plant post-fire".

Shannon-based SIPTU branch secretary Mr Tony Kenny said last night: "We are available at all times to speak to the company and we would be glad to return to the Labour Court if necessary.

"We have around 100 members working at Lufthansa and this is a complicated issue, which we hope can be resolved."

Lufthansa is engaged in the overhaul, modification, repair and maintenance of aero engine components for airlines and engine overhaul workshops.