Update 11.51am: David Begg, director of the economic development agency TASC, and a former general secretary of ICTU said that the government “should have some regard towards stabilising the industrial relations climate”.

“Nothing will undermine a Government more than to have chaos at the industrial relations front throughout the country, he said.

Update - 11am: The firm which runs the Luas has warned it can legally terminate staff contracts with just one day's notice.

All workers were placed on protective notice by Transdev yesterday in a protracted dispute over pay.

The firm says it is costing €100,000 every day the tram is not running and there have been eight strike days so far.

It is also warning that pay could be docked to recoup losses.

Gerry Madden, the Managing Director of Transdev, says the row is putting its contract to run the Luas service in jeopardy, but letting workers go with only a day's notice is still a last resort.

Mr Madden said: "We can do (terminate staff contracts with just one day's notice), but we have no plan to. It's a measure that we may have to at some point go there, but we are trying to say to people that there are many other options apart from this.

"If for instance, Transdev were to be taken off the pitch or if after 2019 didn't win again, therefore the employees would have to start again. There is no contractual rights between the members and TII (Transport Infrastructure Ireland)."

Update - 9.30am: A former general secretary of the Irish Congress of Trade Unions is calling for the re-establishment of the Employer Labour Conference.

It comes after the Luas operator Transdev placed all staff on protective notice, placing their future employment on a day to day basis and putting an April 17 deadline on accepting a lower pay offer.

David Begg - is the director of economic development agency TASC and a former general secretary of ICTU - says the new Government needs to carefully consider ways to avoid major industrial unrest.

Mr Begg said: "It needs now a broader government perspective.

"I think Micheál Martin's people and the Taoiseach's people - when they are negotiating - they need to take a few minutes to contemplate how would we stabilise the economy from an industrial relations point of view and whether there wouldn't be a good case for re-introducing something which is tried and tested."

Earlier:

SIPTU has said it is considering balloting Luas workers on an all out strike.

Last night Transdev put workers on protective notice - saying the union's expected pay rises are beyond its available resources.

The company wrote to staff yesterday and warned that anyone engaged in industrial action will face pay deductions.

Transdev has said it is now hiring workers on a day by day basis - while SIPTU has said the action makes the possibility of reaching a negotiated settlement more remote.