Bombardier is Northern Ireland's largest manufacturing employer

Talks between management and unions at a Belfast aerospace company in a long-running pay dispute have broken down again.

Contradictory statements have been issued by the two sides at Shorts following several days of talks at the Labour Relations Agency.

More than 1,000 jobs are under threat at the company after workers in two out of three unions voted in May to reject a proposed four-year agreement over pay.

On Friday, trade unions accused the firm of "asset stripping" and of wanting to make up to 3,000 redundancies.

But the company rejected the claims as "ridiculous" and said the unions appeared unable to engage in meaningful discussions to ensure the future competitiveness of the Belfast operation.

The unions said they would recommend further industrial action to their members.

Shorts is Northern Ireland's largest manufacturing employer.

Financial difficulties

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".

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 recent Sars outbreak.

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