Canadian aerospace giant Bombardier has said the loss of 645 jobs at Shorts does not mean closure of the Belfast plant is inevitable. The parent company is blaming difficulties in the regional jet market, particularly in the US, for the decision to cut some 1,300 jobs in both Northern Ireland and Montreal, Canada.
The job losses will hit all levels at Shorts, including management and will take nine months to implement starting in January.
Former trade and industry minister and Ulster Unionist minister Sir Reg Empey claimed the losses represent some 1.5 per cent of all manufacturing jobs in Northern Ireland. He warned of serious consequences in the downstream economy.
However, sources at Shorts are insisting the decision to scale back production "has nothing to do with the workers" in east Belfast.
The Irish Times was told Bombardier's commitment to the Belfast plant - Northern Ireland's largest manufacturing employer - is undiminished.
Admitting to market difficulties in the regional jet market, a spokeswoman pointed to other aspects of Shorts's business that were looking positive.
"The market situation should improve and we have good products, but we must manage the regional jet production schedule now in the short-term to ensure success in the long- term," the company said.
"Other areas of Bombardier's business remain strong. The business jet and regional turboprop markets continue to expand, and Bombardier's products, in which Belfast plays a major role, are selling well."
The company hopes the Belfast plant will be involved in potential new aircraft programmes such as the C-Series jet and a stretched version of the CRJ900 - "We would be looking to [ the British] government for support should the programmes be launched."
The company said significant investment would continue.
"We have recently completed a £4.5 million (€6.7 million) investment in our composites technology at our Dunmurry plant, and a £1.5 million expansion of our customer support and repair facility." Bombardier has invested £6 million in training and continues to invest in R&D.
"These will help ensure that we continue to develop our capabilities, remain competitive and have a sound future here in Northern Ireland," the spokeswoman added.
Bombardier president Pierre Beaudoin said the company had to "achieve our goal of increased profitability and our success in the long-term".
"This means making difficult but necessary decisions," he said. "We recognise the impact this decision will have on our affected employees and we will treat them fairly and with respect."
Demand levels for Bombardier's turboprop aircraft were sound, the company said yesterday. However, an upturn in this sector would not be enough to offset the market downturn in regional jets.
The Belfast plant vice-president and general manager Michael Ryan admitted that while market conditions prompted the decision to cut the workforce, previous job cuts had not been implemented in full. The losses announced yesterday "might" rather than "would" be put into effect, he said.
"We are not in control of the market or the sales side of things," he added. "We have to deal with it when it comes around." Unions and political representatives expressed shock at the scale of the announcement, although many knew poor demand levels would have an impact on the workforce.
Peter Williamson, of the Amicus union, said: "While we would have been aware that there were difficulties at the company, I think the announcement of 645 jobs on a Northern Ireland scale is enormous," he said.
Union members asked pointedly if the losses announcement was linked to the forthcoming pay round, a charge denied by the company.
East Belfast MP Peter Robinson said the losses, if enacted, would have a "colossal" impact locally, and he denied any foreknowledge of the cuts.