Puma,
You should be entitled to a refund as the policy is 4 hours or more delay and they pay out a refund to all passengers.
It's the usual problem with any shorthaul airline. The aircraft are used for many sectors throughout the day. If there is a delay at the start of the day it will effect all of the susequent sectors, especially with the low cost airlines with their short turn round times. With 20 minute turn round times at Scottish airports if you arrive 5 minutes late at Edinburgh you have to turn round in 15 minutes to make up the time - clearly impossible.
Part of the reason for being 'so close to industrial action' is the stress that such short turn round times causes. If the work environment was more relaxed I am sure there would be less insentive for possible industrial action.