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ANY DEAL with the Government to avoid public sector pay cuts is likely to involve significant reductions in the number of people employed in the public sector from 2011, Impact general secretary Peter McLoone has warned officials in his union.

In a private and confidential letter sent to Impact industrial relations staff in recent days Mr McLoone said: “In my judgment the alternative [to pay cuts] is likely to involve a significant reduction in public service numbers over the next three to four years, with the likelihood that some additional exceptional measures will also be needed in 2010 to deal with the budgetary crisis next year.”