The trade union Unite has said it will consider escalating its industrial action at the British embassy in Dublin next week if there is no move to find a resolution to the row over the forced redundancy of three personnel.
About 50 locally-recruited staff placed pickets at the embassy as part of a one-day strike yesterday. Among those on strike were the British ambassador's butler and driver.
Unite regional secretary Jimmy Kelly said that "all types of action" would be considered at a special meeting of staff on Monday if the embassy was not prepared to engage in talks.
Mr Kelly said that the embassy had refused to attend a hearing at the Labour Relations Commission (LRC). However, he said the union would be prepared to take part in facilitated mediation with an agreed third party.
Meanwhile Unite, which is one of the largest unions in Britain with about two million members, is to use its political influence with the Labour Party there to raise the embassy row.
The embassy said it operated normally yesterday despite the strike.
It said it regretted that the three redundancies had been necessary and that it had acted in accordance with Irish labour law and its wish to be fair and reasonable to staff.
The three staff who are to be let go are senior personnel in the trade and investment section.
The embassy said that UK Trade and Investment had to align resources with their new strategic priorities including emerging markets.
"We examined the scope for redeployment within the embassy. When this proved impossible, we offered redundancy packages . . .", it said.
The embassy said it could not avail of the LRC's invitation to discuss "proposed redundancies" as these had already taken place.
It emerged yesterday that embassy staff have also lodged a claim for compensation over their inability to claim a PAYE allowance.
The staff at the embassy are recruited as self-employed contractors and do not pay PAYE.
Union sources said that the compensation involved could be more than €250,000.