A planned rail strike scheduled for next Sunday and Monday has been averted.

The industrial action, which would have affected about 160,000 passengers, was called off early this morning following lengthy talks at the Labour Relations Commission between management at Iarnród Éireann and the National Bus and Rail Union and SIPTU.

As part of the deal, management is to withdraw pay cuts of between 1.7 and 6 per cent for 3 weeks to allow for a ballot on the Labour Relations Commission proposals to take place.

The company had unilaterally introduced temporary pay cuts on Sunday of last week as part of a controversial cost -saving initiative.

The pay cuts were scheduled to remain in force for 28 months.

The deal, which is scheduled to last 25 months, also agreed on regular forums between trade unions, the National Transport Authority (NTA) and the Department of Transport.

Under the proposed deal, a discussion on productivity and pay growth will be held at the termination of the agreement where unions will be allowed to make further claims.