SIPTU is considering a ballot for an all-out Luas strike, after Transdev placed staff on protective notice.

A letter was circulated to staff this evening. 

The union says the move means staff can be laid off at a day's notice.

Transdev says in the letter that it will make deductions from the pay of drivers and supervisors.

SIPTU says the company is now offering drivers a pay rise that is lower than the one agreed at the Workplace Relations Commission, and rejected by staff. 

Transdev wrote to employees today after talks failed to end the deadlock yesterday. The company says there is no basis for further talks or intervention, given the union's current pay claim. 

SIPTU says today's letter to staff marks an escalation in the dispute and makes the possibility of reaching a negotiated settlement more remote.