Exporters warned today businesses would be hit hard if Irish Ferries' services to the United Kingdom were disrupted by strike.
Irish Ferries has refused to accept a Labour Court ruling not to lay off 543 seafarers, sparking fears that workers may vote for industrial action while management may decide to end services.
John Whelan, Irish Exporters Association chief executive, said any disruption in trade links to Britain would be very damaging.
"It's not a good scenario for exporters and its not a good scenario for anybody trading in Ireland whether you are importing or exporting," he said.
"Inevitably there will be disruption, and there's no certainty that another operator would come in."
But Mr Whelan stressed that nowadays outsourcing was part and parcel of doing business in the global market.
Meanwhile Siptu warned that an industrial dispute at Irish Ferries is inevitable if the company tries to lay off its existing staff.
The Labour Court recommended yesterday that Irish Ferries honour a three-year agreement struck last June with the unions, but the company last night said it would not do so.
Siptu branch secretary Paul Smyth
Siptu begins balloting members tomorrow on acceptance of the Labour Court recommendation, and branch secretary Paul Smyth told ireland.comtoday that industrial action would also be considered.
"The company seems solely intent on proceeding as planned. If that happens I think that will inevitably lead to a dispute. There are rumours going round and I'm hearing people aboard the boats and they are very unhappy."
"Some have mixed emotions but they're aggrieved and upset at the way they are being treated," Mr Smyth said.
He was disappointed but not surprised by the company's refusal to abide by the Labour Court's recommendation and pointed out that management were defying the Government, the National Implementation Body and now the Labour Court.
"It seems they're giving the two fingers to everyone," he said.
He welcomed the Government's support for the workers but questioned doubts expressed by Taoiseach Bertie Ahern and Minister of State for Labour Tony Killeen about whether it can use do anything to stop the company proceeding with its plan.
The union had received its own legal advice indicating that legislation or regulation was an option for the Government, Mr Smyth said.
"Irrespective of the Irish Ferries scenario, the Government should be regulating its own ferries," he added while warning of the implications of unilateral action by the company.
Ictu has pulled out of talks on a new partnership agreement, citing Irish Ferries attempt to ignore agreed procedures as a primary reason.
Mr Smyth said: "Other employers must be watching this saying if Irish Ferries can do this, why can't we?".
Irish Ferries argued yesterday that it had a legal responsibility to keep the company profitable and therefore had to reject the recommendation.
"Given the fiduciary responsibilities which must be discharged by the board of the company under law, it is impossible to see how management can accept any course other than the-cost reduction programme proposed by the company," it said.
Rising fuel costs, a fall-off in passengers and the lower cost base of its competitors who use outsourced agency crew were cited as further factors driving the need to cut costs by the company.
A company spokesman could not be contacted today. Management said yesterday that it is considering its next move.