Luas operator Transdev has said the current demands of staff in their pay dispute are totally unaffordable and will not be countenanced.
In a statement, Transdev CEO for Ireland and the UK Nigel Stevens said the company was prepared to conclude a fair and balanced agreement that is fully in line with current norms in the public and private sector - with essential cost offsetting measures.
However, he said the current demands of staff were so far beyond this that they were totally unaffordable and would not be countenanced.
He confirmed that he has written to all staff asking them to engage constructively with the local management team to conclude an agreement that is within the limits of the available resources.
In the open letter, Mr Stevens said there is no additional funding, nor will there be, from Transdev or other sources to allow for any improved offer.
The letter also says the company will not stand idly by while its already challenging financial position is further eroded.
He says he is deeply disappointed about the current dispute and its impact on passengers - but said Transdev remains 100% committed to fulfilling the current Luas contract up to 2019 and hopefully beyond that date.
SIPTU said it is disappointing and inexplicable that Mr Stevens did not meet with Luas workers despite meeting a number of "key stakeholders".
SIPTU Sector Organiser Willie Noone said the Transdev CEO "obviously does not view Luas workers or their representatives as being key stakeholders worthy of meeting".
Another SIPTU Organiser, John Murphy, called on Mr Stevens to withdraw the "implied threat" in his letter of cutbacks.
He said union representatives are available to engage in negotiations to find a "just conclusion" to the dispute.
Minister for Transport Paschal Donohoe said a resolution to the dispute cannot increase costs to the taxpayer and must deliver "sustainable wage rates" that do not lead to higher fares for commuters.
In a statement, he said the company had worked extensively with the Workplace Relations Commission and the Labour Court and despite a generous package being agreed at the WRC, those efforts failed.
He called on the unions involved to engage seriously with the WRC and Labour Court but warned that due to the intractability of the dispute and the rejection by workers of the proposed deal "there is a risk of prolonged and more regular strike action".
Transdev's commitment to fulfilling its contract up to 2019 was welcomed by the National Transport Authority.
In a statement, NTA Chief Executive Anne Graham said Luas operations under Transdev (previously Veolia) have run extremely well from the outset until the current dispute.
She said this weekend's strikes, which Transdev confirmed earlier will go ahead, will "only add further inconvenience" to customers.
Last week, staff overwhelmingly rejected pay and productivity settlement proposals brokered by the Workplace Relations Commission and went on strike on Easter Sunday and Easter Monday.
That deal would have delivered pay rises of between 8% and 18% over 33 months, including a long service increment.
However, staff felt that the pay rise was not sufficient, and also had other issues including the requirement to work longer shifts, and lower pay rates for new entrants.
After the rejection of the proposals, Transdev Ireland Managing Director Gerry Madden said the offer brokered at the WRC was now off the table and the company would be reflecting on the outcome.
As of now, there is no sign of any intervention by the WRC, the Labour Court or any other third party that might break the deadlock.
Two further days of strike action are scheduled for later this month.
