Management and unions at Bord Na Móna are to meet to discuss the implications of the company's worst peat harvest returns since Bord Na Móna was set up in 1946.

Disastrous weather over the last four months led to the loss of over two and a half million tonnes of peat in the harvest.

Unions at the semi-state company say there is no basis at this stage for considering redundancies among its workforce of 2,000 people.

The financial challenges facing Bord na Móna are unprecedented. 

In its 66-year history there has never been a peat harvest as bad.

The company was already seeking transformational change in work practices for its 2000 permanent staff before a disastrous summer denied them 2.6m tonnes of peat in their targets.

Briquette supplies will not be affected because of stocks built up but a restructuring proposal already on the table intends to reduce jobs in workshops and senior management has flagged problems with transport costs and a fuel supply agreement with the ESB that is due to expire.