Staff at Iarnród Éireann who are represented by the trade union Siptu, have voted to reject cost saving proposals at the company including pay cuts.
The union said that its members voted by 51 per cent to 49 per cent against proposals put forward last month by the Labour Court.
The move increases the prospect of potential industrial action on the railways, although other unions at the company have yet to finalise their ballots on the cost saving plan.
Siptu represents around 2,000 of the 3,760 employees at the State train company.
Siptu organiser Paul Cullen said that the union's members in the company would now be balloted on strike and industrial action which would be undertaken in the event of management attempting to to implement changes to workers' terms and conditions of employment without agreement
"Our members have found this recommendation as it currently stands unacceptable. We would now ask the company to reflect on this rejection of the recommendation. Siptu representatives will be in contact with the management of Irish Rail in the coming days to discuss our members' position."
The cost-saving plan was recommended last month by the Labour Court which said the measures were unavoidable if the future of the company is to be protected.
The plan called for pay cuts of between 1.7 per cent to 6.1 per cent which would apply for a 28-month period.
The Court said that during the 28- month period when the pay cuts were in place, the company should be prevented for seeking any additional reductions in terms or conditions.
The Court also said a committee should be established to pursue non-payroll savings.
It said any cost reductions secured in this process should be used to reduce the impact on payroll.
The recommendation said the rail company had generated accumulated losses between 2008 and 2014 of just under €150 million.
Labour Court chairman Kevin Duffy said it had consistently pointed out it would only recommend retrenchment in established conditions of employment where on independently-verified evidence it was plainly and unambiguously necessary to do so in order to protect employment.
Iarnród Éireann had argued to the Labour Court that it had experienced a catastrophic fall in income since 2008 due to cuts in the Government’s subvention, rising fuel costs and declining passenger numbers.
The rail company had warned last month that failure to implement the cost saving plans could lead to compulsory redundancies and the closure of some lines.
