Train driver unions will ballot their members on industrial action this week after talks with bosses derailed.

Both SIPTU and the National Bus and Rail Union (NBRU) have confirmed they will ballot their members from today, after talks with the semi-state company over pay collapsed at the Labour Relations Commission (LRC) last week.

Irish Rail says it is losing €1m a month.

The proposed action would include stoppages on DART and commuter services, as well as national rail services.

Drivers say that the refusal of Irish Rail officials to negotiate on past productivity has led to them seeking a mandate for action.

Iarnród Éireann have described the news of the ballot for industrial action as "very disappointing".

Independent Senator and economist, Sean Barrett, says the company is facing more competition from buses with cheaper fares.

"People like the Aircoach and I see M7 Coaches now extending from Limerick to Ennis, Killarney and Tralee" he told Newstalk Breakfast.

"So the railways, on all the routes apart from Sligo and Mayo, will face competition".

"Younger people seem to be saying I'll take the lower fare by the Aircoach or by one of the other competing bus companies, and spend the money when I get to Cork or when I get to Galway" he added.

He says the services are in trouble for several reasons.