Updated: 15.10
The head of the Luas operator says there is no "magic chequebook" to fix the current dispute.
Gerry Madden of Transdev says he hopes workers will consider a reasonable offer, and not be stuck on a rise of 25%.
It comes as the former SIPTU secretary-general David Begg has called on acting Taoiseach Enda Kenny and Fianna Fáil leader Micheál Martin to intervene in the escalating dispute.
Yesterday, Transdev placed all staff on protective notice in a letter circulated to workers.
It said in the letter that it may make deductions from the pay of drivers and supervisors.
SIPTU says the move means staff working with the tram company can be laid off at a day's notice.
They say staff are now considering balloting for an all-out strike.
The union also says the company has offered drivers a pay rise lower than that agreed at the Workplace Relations Commission (WRC), which was rejected by staff.
Speaking to Newstalk Breakfast, David Begg says there's been a pretty significant escalation of the dispute, and called on Fine Gael and Fianna Fáil to tackle the crisis before the parties get too 'dug in'.
"I think Micheál Martin's people and the Taoiseach's people, when they're negotiating, they need to take a few minutes to contemplate how would they stabilise the economy from an industrial relations point of view," he said.
"And whether there wouldn't be a good case for reintroducing [an employee-labour conference], which is tried and tested. You're going to see something of an upswell of pay claims, with people trying to restore what they've lost in the past, and who can blame them?"
While Gerry Madden told the Pat Kenny Show here on Newstalk there are always consequences to actions.
Meanwhile, Sinn Féin TD David Cullinane has urged the acting Transport Minister Pascal Donohoe to step up and play a more central role, in solving the Luas dispute.
The Waterford Deputy said Luas management have upped the ante and are now using strong arm tactics, by placing drivers on protective notice.
He said it was unacceptable these measures were being used on a service that is subsidised by the state.
Deputy Cullinane says Minister Donohoe needs to act now:
