Irish Rail is warning potential pay rises could force it into bankruptcy.

Unions want an extra 3.75 per cent but the transport company has told the Labour Court it's in a 'perilous financial situation' and may need to cut four routes to stay afloat.

Routes in the firing line include Limerick to Ballybrophy and Limerick Junction to Waterford - axing them would save around 5 million a year according to Irish Rail.

Closing Gorey to Rosslare would save 4.4 million and shutting the Ennis to Athenry would raise 2.8 million Euro.

The lines have been listed on a submission to the Labour Court by the transport Company.

The Irish Independent says it's seen the document which sets out how bad the books are and what potentially could be done about them.

It's still unclear what exactly will happen but Irish Rail says one thing is certain - forcing it to up its wage bill would result in 'immediate financial crisis'.