The action by shop floor workers is part of a dispute over pay

About 4,000 workers at Belfast aerospace firm Shorts are continuing industrial action in a dispute over pay and cost-cutting.

Picket lines have been set up for the third day at the gates to the company's complex at Queen's Island, in the east of the city, according to union representatives.

In a statement, parent company Bombardier claimed that an increasing number of employees were coming to work as normal.

The company said that many more wanted an end to the strike.

A meeting is due to take place on Saturday between union leaders and newly elected assembly members at Transport House.

Informal talks between Bombardier Shorts and the unions are scheduled to continue on Sunday.

The action - the first of its kind at the company in 20 years - involves about 4,000 members of the Amicus and Transport Workers' union.

David McMurray of the Transport and General Workers Union said it was important that the plight of the workers was kept in the public eye.

The strike centres on two specific issues - the introduction of afternoon shifts and worries about redundancies.

However, it is central to a wider dispute.

Workers narrowly rejected a four-year pay deal agreed by unions and management and the dispute has continued for the past six months.

Formal negotiations

Subsequent talks to resolve the issue have been close to finding a solution but in recent weeks relations have worsened to the point where strike action is being taken.

Workers at the company, which is Northern Ireland's biggest manufacturing firm and owned by Canada's Bombardier, are becoming increasingly angry and militant.

Trade minister Ian Pearson has called on both sides to "do whatever is necessary" to resolve the dispute.

In May, Shorts cut 600 jobs. The firm said a further 580 posts would go before next April but this was reduced in August to fewer than 100.

Shorts said its programme of cutbacks was in response to what it called "very challenging market conditions".

Bombardier has made it clear that it needs to reduce the workforce in Northern Ireland in order to improve competitiveness.

The Canadian company said it was essential that the Belfast operation was "in the best position possible to retain contracts with its customers who are demanding very competitive, long-term price commitments".

The aerospace industry has been badly affected in recent years by events including 11 September, the consequent fear of terrorism, the downturn in the global economy, competition from low-cost carriers and the Sars outbreak earlier this year.

Many airlines are in financial difficulties and have cancelled some aircraft orders and put others on hold.