1,200 jobs at aircraft maintenance firm SR Technics are in jeopardy this evening after a key minority of workers rejected new productivity arrangements.
The majority of craft workers at SRT voted to accept the package of new work practices, which the company said were essential for its survival.
However, one key group of workers - around 20 aircraft handlers who belong to SIPTU - have voted against the proposals, which were hammered out in marathon talks at the Labour Relations Commission during the week.
In a statement, SR Technics said it was very disappointed to confirm that they have not reached agreement with all their unions on the new working arrangements necessary for them to enter into a new 10-year contract for line maintenance services with Aer Lingus.
They said the rejection by the 20 handlers represented by SIPTU had placed them in the position where they cannot sign the key line maintenance contract.
They say this development will be reviewed with their parent company and the other stakeholders involved.
Management at SRT had warned staff that the company could go out of business if employees did not accept the new work practices by today.
This followed an ultimatum from Aer LIngus earlier this week, in which they threatened to withdraw from a key maintenance contract if final documentation is not signed by June 1.
Earlier this year, SRT - formerly known as TEAM Aer Lingus - lost three of its four Aer Lingus maintenance contracts.
The company has previously stated that the remaining Aer Lingus line maintenance contract is crucial to its viability.
It recently announced that it would not be paying staff the next phase of the national pay agreement, and admitted this was partly due to the loss of the Aer Lingus contracts.