Unions at Eircom are likely to today serve the company with a week's notice of their intention to take industrial action.

This follows the breakdown yesterday of talks between the two sides over Eircom's failure to pay a 2 per cent pay increase due on May 1st under the national wage agreement Towards 2016.

Leaders of the four unions at Eircom were due to meet early this morning to consider issuing notice. Steve Fitzpatrick, general secretary of the Communications Workers' Union (CWU), said he was "confident" that notice would be sent to Eircom today.

The meeting yesterday lasted more than one hour, with Eircom saying it presented an "eight-point proposed basis for settlement" to the unions.

The unions said the revised document was similar to the memorandum of understanding that had already been issued by Eircom, and which outlined processes for changing work practices. The unions said they would not accept any preconditions to the payment of the 2 per cent.

Mr Fitzpatrick said he now expected the Labour Relations Commission (LRC) to intervene in the dispute.

"I will, as a courtesy, send a copy [ of the notice] to Ictu [ the Irish Congress of Trade Unions] and the LRC, and it will then be a matter for them to decide what they do. I assume they [ the LRC] will get involved."

Commenting on the prospect of further talks, Tony Olthof, Eircom's group human resources director, said: "There's still significant time to have some rational discussions at the LRC in the next few working days. Our door remains open, and we continue to have informal contacts with officials, but there will probably be a standstill until we reach the LRC."

In a statement issued after the meeting yesterday, Eircom said it was "concerned that certain CWU officials may be pursuing an undisclosed objective, perhaps to secure pay outcomes inconsistent with Towards 2016".

Mr Fitzpatrick rejected this. "The national wage agreement provides for payments to be made on certain dates. That hasn't happened. So who is undermining the fabric of the agreement? Maybe this is an Australian way of doing business."

The CWU represents more than 5,000 staff at Eircom from a total workforce of 7,100. The other unions involved are Impact, the Civil Public & Services Union and the Public Service Executive Union.