Tackling sectarianism in the workplace has been a key factor in the survival of a Northern Ireland firm which has just announced record profit levels of more than £40m.

In the mid 1980s, Belfast aerospace company Shorts was a loss-making nationalised industry which had a reputation for discriminating against Catholics.

This image damaged the company abroad, according to Northern Ireland Fair Employment Commission chairman Sir Bob Cooper.

Though it was faced with a number of business challenges, it also had to tackle the sectarian issue on its own factory floor.

Sir Bob Cooper: firm stand was vital for Shorts' survival

"If the management had not won that battle, then I think that the chances of Shorts getting orders throughout the world would have been very limited," he said.

"The management closed its eyes to the worst manifestations of triumphalism in the plant."

As Northern Ireland's largest manufacturing employer, the imbalance in the workforce was the focus of attention both in Northern Ireland and in the US where the company had key customers including Boeing.

In the 1980s, research showed that only 5% of the workforce was Catholic.

A clampdown by management on the display of flags and emblems was one step to make the company more attractive to Catholics.

Catholic workforce is increasing

This was coupled with a new fair employment policy and attempts to reverse the company's negative profile in the Catholic community.

At present 15% of the 6,200-strong workforce is Catholic - and that proportion is increasing.

Shorts President Ken Brundle is hoping to achieve even more ambitious targets.

Ken Brundle - hoping to attract more Catholic applicants

"I would like to see around 35% of our applicants coming from the Catholic community," he said, adding that this reflected the composition of the area from which employees would be expected to travel to work.

"Today it's 25%, on a recent advertisement we hit the 30% level," he said.

The success so far of the campaign against sectarianism coupled with an £850m investment programme since it was sold to Canadian giant Bombardier in 1989, has been reflected in the latest company accounts.

Changes in its product emphasis have also helped achieve this progress.

Shorts have just announced record profit levels of £40.6m, the largest in its history.