Bus Eireann has confirmed it is planning an overtime ban at the troubled company, along with a range of other cost-cutting measures.

Management have written to staff saying they will also implement a recruitment ban and end flexi-time arrangements for clerical staff.

The National Bus and Rail Union has called the proposals "ludicrous".

It is instructing members not to cooperate with any changes to work practices.

It wants a forum set up to discuss the crisis at the company, which could become insolvent within 18 months unless major cost savings are implemented.