Dublin Bus is to cut 290 jobs and reduce its fleet by 120 buses in a bid to reduce losses at the firm.
The State-owned firm also said it would not pay the 3.5 per cent national pay award due in April, nor the 2.5 per cent increase from October 1st.
The 10 per cent reductions in staff and the fleet come after a review of Dublin Bus's services in the city, which identified trends such as a sharp decline in passenger numbers as employment contracted, growth in newly developing areas of the city and a reduction in consumer spending.
Passenger journeys fell by 4 to 5 per cent last year, with further decreases expected in 2009.
The jobs will be cut throughout the organisation, including executive, clerical, operations and maintenance positions.
The company said it was facing a serious and challenging financial position in 2009, with losses for the year projected at €31 million if what it described as "corrective action" was not taken.
"This is due to the current exceptionally challenging economic environment which has led to a sharp decline in passenger numbers and also the abolition of the fuel duty rebate following an EU directive," Dublin Bus said in a statement.
The company recorded an operating loss of €10 million in 2008 after turning a profit of €4.7 million the year before.
Dublin Bus today pledged the peak and off-peak services would have "adequate capacity" to cater for current demand.
"The network adjustments will involve an adjustment to services to match existing levels of customer demand," it said in a statement. "It should be recognised that bus operations are flexible and can be expanded and delivered within a relatively short timescale meaning that Dublin Bus will be able to respond quickly and effectively to a growth in demand."
Siptu said it would resist compulsory redundancies, but would consider the company's proposals and consult with members before responding.
"We can advise members now that we will not accept compulsory redundancies, but we will explore all other avenues, including considering alternatives proposals that will ensure the stability and survival of the company and protect the working conditions of employees," Dublin Bus branch president Tony Fallon said today.
Meanwhile, the National Bus and Rail Union (NBRU) said the proposed cutbacks would impact peak hour services, and leave vulnerable groups such as the elderly, schoolchildren and the unemployed "stranded" in parts of the county.
"The 120 bus reduction in the fleet size is unprecedented and cannot be introduced without impacting on the frequency of services, including peak hour services, regardless of what the Minister says," NBRU general secretary Michael Faherty said.
"These proposals are also socially retrograde. They will effectively deny access to any sort of transport to those who cannot afford a car and live in areas facing the loss of routes."
Mr Faherty said the redundancies must be on a voluntary basis, as there were "significant numbers" willing to leave under such terms.
"Any attempt to impose job cuts on a compulsory basis is totally unacceptable and will be resisted," he said.
The union said it would address the pay issue when the outcome of the current talks between the social partners was known.
Earlier this week, opposition parties criticised proposals to curtail services, with Fine Gael vowing to oppose any cuts.
The party's Seanad transport spokesman, Paschal Donohoe, today called on Minister for Transport Noel Dempsey to set up the Dublin Transport Authority and scrap the Government's opposition to private sector bus operator.
"The workers have my full sympathies as they face a very bleak future in the midst of a recession. Commuters will also suffer from the withdrawal of 120 buses, which will have a significant impact on routes
and services," he said.
"However, there is hope for both workers and passengers if Minister Dempsey abandons the Government's long-held opposition to private bus operators. The Government should move immediately to set up the Dublin Transport Authority, and instruct it to find alternative operators for the routes and services which are being axed. This would provide alternative employment for the experienced staff being laid off by Dublin Bus."
Labour Party transport spokesman Tommy Broughan criticised the Green Party for the cutbacks, accusing them of abandoning their core principles and policies.
"The slashing of bus routes and services is a devastating blow for commuters and will particularly hit low income workers many of whom have no option but to use public transport to get to work," he said.
"Green Ministers now appear to have totally abandoned all of their core principles and policies in their desperation to stay in power with this discredited, incompetent and shambolic government. Unfortunately, the legacy of their surrender will be untold long-term damage to communities across Ireland as critical public transport services are cancelled or severely cut back."
He urged the Government to lower fares to encourage people to use public transport, and called for an emergency meeting of the Dáil Transport Committee to address this the proposed cutbacks.
Sinn Féin MEP Mary Lou McDonald described the withdrawal of 120 buses as "incomprehensible", and called for the decision to be reversed.
"This is a bad decision for workers, the people of Dublin, for public service delivery, for the environment and for Ireland's sustainability," she said.
"It is also an entrenchment of failed Fianna Fáil policy. Dublin is heavily dependent on car usage, primarily because government policy for decades now has prioritised road building above public transport infrastructural projects and the necessary resources to support them. Government should be increasing investment in existing public transport not reducing it."
She also warned against introducing private operators to some of the routes, claiming that they would "cherry pick" routes.
