Unions and management at An Post will meet this afternoon to discuss postal delivery arrangements in the run-up to Christmas.

However, union sources indicated last night, that notwithstanding this, there is still a very strong possibility of industrial action before Christmas.

The two sides are meeting to agree arrangements for Christmas deliveries which normally begin in late November. Overtime and payment for it are key to these discussions.

Last night, an An Post spokesman said it would be very damaging if there was disruption to postal services before Christmas.

"It would undermine public confidence in the mail system," he said.

It is understood that agreements have already been reached for deliveries in the Dublin area and today's meeting will seek an accord on deliveries outside the capital.

The An Post spokesman said arrangements similar to last year were being sought.

In Dublin this included around 90 hours overtime and payment of around €20 per hour.

"From our point of view it is separate from what is going on regarding the ballots," the spokesman said.

However, Communication Workers' Union (CWU) general secretary Mr Stephen Fitzpatrick, said that the Christmas arrangements would be subject to ratification by the national executive which will meet on December 2nd.

The CWU is currently holding two ballots of its members on proposals from An Post.

One of the ballots is to give the CWU the power to take industrial action to protect existing agreements, if it sees fit.

Mr Fitzpatrick said it was expected the outcome of these ballots would be known by the December meeting.

He said the executive was getting many calls from angry members who were not interested in working Christmas overtime this year.

Mr Fitzpatrick said he could not rule out industrial action.

An Post is annoyed that the CWU is balloting members and has said it is a further delay which the loss-making state company cannot afford.

Mr Fitzpatrick said he could not understand its annoyance. He said the union had a right and a duty to consult its members on such important issues.

An Post is seeking 1,450 redundancies as part of a radical restructuring which will see major changes in overtime.

It says overtime currently costs it around €17 million a year.

It also wants to absorb SDS, its parcel and courier delivery business into its existing operations, with consequent job losses.

The company is also proposing to contract out its postal delivery service to self-employed individuals and to close some delivery services, in an effort to curb losses, forecast to reach €30 million this year.