The National Bus and Rail Union (NBRU) has withdrawn from talks with management at Iarnród Éireann on a controversial cost saving plan.

The move increases the potential for industrial relations difficulties on the country’s railways in the weeks ahead.

Management had warned it would unilaterally impose cuts if there was no agreement with unions in a week- long talks process.

The National Bus and Rail Union represents around 500 staff at the State-owned train operator.

Under proposals put forward by the Labour Court in April staff would face pay cuts of between 1.6 per cent and nearly 7 per cent to apply for a 28-month period.

Members of the NBRU and Siptu rejected the Labour Court proposals although they were accepted by other unions.

Subsequently management and unions held four days of direct talks which concluded last night.

Siptu said it would consider on Monday a document which emerged from the talks which had taken place with management over recent days.

NBRU general secretary Dermot O’Leary said the union had accepted an invitation to talks despite a three to one vote against the Labour Court recommendation by its members.

“We wanted the company to immediately engage in discussions on a shared agenda which would have included a recognition that services would match current subvention levels, which in itself would go some way to addressing the finances of the company, provide staff with a dividend for their role in achieving €37 million in savings since 2008 and agree a basis for a future sharing of savings,” he said.

“Despite having engaged in the process in good faith we feel that the company made no serious attempt to address the concerns of our members.”