Luas drivers are braced for a 10 per cent pay cut, after a decision to continue with their strike over pay.

The tram operator Transdev warned staff that if a work-to-rule went beyond 4am this morning they would reduce workers pay.

The union representing Luas workers, SIPTU, met with drivers last night to discuss the matter, but they refuse to join their colleagues who've accepted a wage hike of 13 per cent and say they won't be 'humiliated'.

SIPTU believes a pay cut by Transdev would be in breach of 'The Payment of Wages Act'.

And Divisional Organiser,Owen Reidy, thinks a compromise is still a long way off: