RTÉ News has learnt that 465 jobs at the Lufthansa Technik Airmotive plant in Dublin are at risk due to a three-month overtime ban at the company.
Unions at the German-owned company imposed an overtime ban 14 weeks ago due to the management's refusal to pay the last 2.5% pay increase due under the Towards 2016 national wage agreement.
Staff have been called to a meeting this afternoon where it is understood they will be warned that if the situation is not resolved by the end of the month, closure is possible.
Sources suggest that the overtime ban is causing serious problems for the company, which is being forced to turn away business. Negotiations have so far failed to resolve the row.
It is understood that the company returned a profit last year but felt it was not in a position to pay the increase.
In a statement, the company said that is the ban on overtime was not immediately resolved, 'the survival of the company is at risk and closing is most likely'.
The ban was voted for by members of three unions represented in the facility (TEEU, SIPTU, UNITE), the statement said, so that they could pursue a claim for a 2.5% wage increase by industrial action.
This increase was part of the last National Agreement which effectively collapsed in 2009, the company said.
The company said that when this matter was brought before the Labour Court in 2010, no recommendation was made by the Court with regard to actual pay rates.
Negotiation of any wage increase was 'simply not possible'.
Minister for Jobs, Enterprise and Employment Richard Bruton expressed concern at the issue.
'I would encourage both parties to meet under the auspices of the Labour Relations Commission as soon as possible with a view to exploring ways of resolving the immediate issues at dispute and also the underlying issues that have given rise to the industrial relations problems at the plant,' Bruton said.
Mr Bruton confirmed that he met with Lufthansa a number of weeks ago at the company's request.
According to a spokesperson for the Minister, the two parties discussed what was described as ongoing competitiveness challenges facing the company as well as the current industrial dispute.
He added that the Minister advised Lufthansa of the State's industrial relations machinery available to help resolve the dispute.
A Labour Court ruling found that the company was technically in breach of Towards 2016, but did not order payment of the increase.
Lufthansa Technik also owns Shannon Aerospace, where pay has been cut by 10%, and there have been 130 redundancies.
