SIPTU is to serve notice of industrial action on a Roadstone company in a dispute over pay.

SIPTU official Davy Lane said that in 2011, the Labour Court approved a restructuring scheme for Roadstone Woods aimed at delivering total savings of €6 million for the company.

He said employees were hit with pay cuts of 14-15% as a result.

However, Mr Lane said employees now believe that the company has secured savings in excess of the €6m target and want their pay cuts restored.

The strike is due to commence on Monday 16 June.

It is understood the company position is that the Labour Court approved the cost cuts because of the difficult financial position facing it after the collapse of the construction sector.

Rather than cutting core pay, the company cut the annual bonuses for all staff by 89%.

This meant that a bonus of around €2,500 due for a general operative fell to less than €250.

The bonus cut resulted in a saving of €2m per year over the last three years.

However, it is understood that the company argues that it is still in a fragile financial position, and cannot afford to restore the bonuses.