Talks between Irish Rail and its train drivers have broken down in a development that appears to bring the threat of strike action closer.

Last month the National Bus and Rail Union (NBRU) warned its drivers “have an expectation” of being balloted for industrial action due to tensions regarding their roles.

They claimed to have been downgraded by their employers and while prepared “to contribute some of their pay to the financial situation at the company”, had experienced a lack of respect from management.

At that time Irish Rail said it was prepared to share the benefits of increased productivity or cost savings with its workers.

In a statement it said it was "in an ongoing process under the normal auspices of the Labour Relations Commission to discuss productivity with all grades of employees, including drivers".

However, those talks appear to have faltered on Tuesday. NBRU general secretary Dermot O’Leary said this was because the company was “not willing to engage on the past productivity element” of an agreement brokered in September, 2014.

“It is disappointing to think that the company are reneging on this vital component of the document whilst at the same time continuing to take money from our members pay,” he said.

“A meeting of the joint [LOCOMOTIVE]drivers committee will now be convened to discuss the ramifications and consequences of this decision.”

It is only after this meeting, expected early next week, that any clarity will be available on the issue of balloting members of industrial action which might include some form of strike.

In a statement Irish Rail said it regretted an agreement had not been reached on various productivity measures which “would generate benefits for the company’s still fragile financial position and employee’s earnings”.

“We firmly believe there is scope to identify such measures for drivers and other employee groups, which will help us ensure a stronger organisation, improved job security and earnings and most importantly a better service for customers.”