Talks between Luas drivers and Management have broken down at the Workplace Relations Commission tonight.
It had been reported earlier that drivers had reduced their payclaim from 54 to 30%.
However this demand is still some distance away from the offer by management of 1 to 3% a year, with increased productivity.
Siptu is reported to be considering all out strike action, as the dispute worsens.
Gerry Madden the CEO of Transdev who runs the Luas, was downbeat as he left the talks tonight.
It appears there has been a breakthrough in the Luas dispute with reports that drivers have almost halved their payclaim of 53%.
It has been reported the unions are now looking for a 6% a year increase - over five years with some of that backdated to 20 -14.
However this demand is still some distance away from the offer by management of 1 to 3% a year, with increased productivity.
Talks aimed at averting further industrial action are continuing this evening at the Workplace Relations commission.
A strike tomorrow has been called off, but further action is planned for St Patrick's Day and Easter Sunday and Monday.