Strikes will halt Luas trams this weekend as Dublin marks the centenary of the Easter Rising after staff overwhelmingly rejected a pay deal drawn up last week in a bid to resolve a lengthy industrial dispute at the company.

The trade union Siptu had served notice of strike action at Luas on Easter Sunday and Easter Monday, as well as on four other days in April. It has confirmed the industrial action will now go ahead.

Luas drivers rejected proposals drawn up at the Workplace Relations Commission last week by 99 per cent. There were 165 votes against the proposals and two in favour. Revenue protection grades working on the Luas service voted 100 per cent against the proposals.

The deal involved pay increases of up to 18 per cent over a 33-month period.

Luas operator Transdev had said the proposed deal put froward following the days at the Workplace Relations commission represented its final offer.

In a statement, the company said it wished to express its “shock and disappointment at the rejection” of the proposal.

“We entered the talks in good faith and while the WRC proposal is challenging for the company we were 100 per cent committed to supporting it,” it said.

It said a driver on on €42,247 at present would have would have seen their pay rise to € 50,000 by January 2019 and also receive a bonus of €3, 250.

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“The Workplace Relations Commission proposal was at the very outer limits of what we could afford and for this to be rejected is deeply disappointing. In accordance with the terms of the WRC document that proposal is now withdrawn,” Gerry Madden, Transdev managing director, said.

Mr Madden said the company would not be issuing any “knee jerk response” to the vote by staff. He said the decision had serious implications for the company and our staff. He said the company would “reflect over the weekend and issue a considered response”.

He said the company had no plans to bring in buses to provide an alternative transport service during any strike action.

‘Breakdown’

Siptu divisional organiser, Owen Reidy said it was clear “that there is a complete breakdown in the relationship and trust between the driver grade and management at the company”.

He said drivers did not want to accept a new pay scale that leaves new entrants on lower pay than current staff and that the productivity sought in the proposal was disproportionate and vague in the case of the Luas extension.

Mr Reidy said the union accepted the democratic decision of its members.

“We have always stated that notified industrial action will proceed unless an agreement is reached and that remains the case. We do remain available for discussions with the employer.”

The Government has urged Siptu not to go ahead with the planned Luas strikes over Easter weekend.

Minister for Transport Paschal Donohoe said he was surprised and disappointment at the employees’ rejection of the pay deal.

“The terms of the Workplace Relations Commission proposal involved a generous package of pay increases for the workers from their employer - far in excess of what many other private or public sector employers could possibly afford for their staff at this time,” he said. “So it is difficult to understand the Luas workers’ rejection.”

Mr Donohoe called on Siptu to withdraw its strike notice for Easter Sunday and Monday, “notwithstanding the unresolved position between the workers and their employer”.

Under the pay proposals, Luas drivers were to receive increases of about 18.7 per cent over a period of just under three years while revenue protection staff were set to receive about 14.7 per cent under the new proposals .

The proposed increases for drivers, averaging at more than 6 per cent annually, would be about twice the projected level for rises in the private sector this year.

The deal for drivers would have involved some productivity measures including potentially a longer daily shift from nine hours to nine and a half hours on some occasions - within the existing working week of 39 hours - as well as possible changes to the timing of lunch breaks on some days.