Four days of strike action are planned for the coming weeks
The Transport Minister Shane Ross says the taxpayer cannot be expected to cover any costs from solving the Luas dispute.
Minister Ross says he is 'disappointed' that there is no prospect of an agreement between Luas drivers and the operator, Transdev.
Four days of strike action are planned for the coming weeks - with Transdev saying it will dock a full day's pay for a four-hour stoppage.
The company also suspended sick payments for all drivers over absence rates.
Transdev told SIPTU on Friday it would not be processing payments in the May payroll and thereafter due to allegedly high levels of absence.
Speaking in the Dáil, Mr Ross says whatever happens taxpayers cannot be expected to foot the bill.