Talks between management at Eircom and trade unions will resume later today at the Labour Relations Commission (LRC) in a bid to avert threatened industrial action at the company.

It is understood that Eircom will give its response to proposals put forward on Monday by the LRC aimed at heading off the dispute which could commence tomorrow.

The dispute centres on a failure on the part of Eircom to pay a 2 per cent pay increase due in May under the terms of the national agreement, Towards 2016. The company has sought to link payment of the increase to talks on work practice changes.

Unions have said that they will not enter into discussions on the work practice reforms until the money is paid. They contend that management is not permitted to set preconditions for the wage rise. They have also maintained that the company only put forward its proposals for change after the date for the payment of the money. However, Eircom has argued that it is entitled to seek the work practice changes.

Unions at the firm have served a seven-day notice of industrial action which is due to expire tomorrow although they have declined to specify the nature of the industrial action that may take place.

It is understood that options include a ban on overtime, non co-operation with certain activities, one-day stoppages, an all-out strike, or sectional stoppages.

A spokesman for Eircom told The Irish Timeslast night that the company was "hopeful" that a settlement could be reached.