Politicians from all sides are today calling for mediation in the dispute at the Liebherr container crane factory in Killarney, following the rejection of Labour Court proposals by a substantial majority of Siptu employees at the plant last night.

Siptu, which met all morning to discuss the outcome issued a short statement confirming the rejection “by secret ballot”.

“We are writing to the company in relation to the result of this ballot and will remain available for direct discussions,” union organiser Marie Kearney said.

Mangement have said it will not be issuing a statement at this stage but was also considering the outcome of the ballot

Mayor of Killarney, Paddy Courtney, TDs and town councillors have all called for intervention amid fears that the factory, around which much of the economy of the region revolves, is under threat.

The dispute at the 670-worker factory, one of the oldest multinationals in the country, saw industrial action before Christmas and strong exchanges between management and staff.

Particular umbrage was taken by the German owned company to a one-day strike by Siptu when members of the Liebherr family were leading an international delegation.

Management at the plant issued a statement saying the company’s commitment was no longer to be taken for granted - despite a €50 million investment in recent years and a presence going back 55 years.

Work was already moving abroad to sister factories and orders were being lost to competitors, management warned.

In early December the Labour Court ruled that workers should be paid a 2.5 per cent increase, backdated only to May 2012; the workers claim dated to 2009.

In return a number of conditions were laid down, but some of them were felt not to have been clarified.

Siptu represents 300 workers, less than half the workforce. At a ballot last night 160 of the just under 270 who voted rejected the labour court proposals.