More than 540,000 trade unionists will be voting on the new Programme for Prosperity and Fairness (PPF) during the next seven weeks. It offers cumulative pay rises up to 20.5 per cent and tax cuts of at least 10 per cent by 2002.
Launching the PPF at Government Buildings last night, the Taoiseach, Mr Ahern, said its acceptance would "ensure everybody has a fair share of the prosperity we have gained".
Besides tax cuts worth at least £1.5 billion over the next three years, the PPF provides for £1.5 billion in social inclusion measures. This will see basic social welfare payments move towards £100 a week.
The biggest gainers will be people earning less than £200 a week, who will not have to pay PRSI, and public service workers such as teachers, who will get a 3 per cent "early settlers" pay increase.
The low paid will receive cumulative pay increases of 20.5 per cent and "early settlers" cumulative increases of 19 per cent. Other workers will receive cumulative increases of 15.75 per cent.
To prevent more leap-frogging claims in the public service, the Government and unions have proposed a "bench-marking" review body. It will seek to link changes in work practices and pay to private sector counterparts. It is due to report by October 2002.
If the PPF is accepted by public service unions it will see the Exchequer pay bill rise by £1.2 billion, or 17 per cent, by 2003.
The fate of the new deal is uncertain. The Irish Congress of Trade Unions executive, which recommended acceptance of Partnership 2000, has failed to recommend the PPF package.
Last night the ICTU general secretary, Mr Peter Cassells, described the PPF as "the best deal that can be got out of this process for workers and people on low incomes".
The first major indicator of how trade unionists will vote comes next Monday, when the executive of the State's largest union, SIPTU, meets to decide whether to recommend the package.
The general secretary of the largest public service union, Mr Peter McLoone of IMPACT, came out in favour of the PPF and challenged opponents to put forward anything better.
"When IMPACT members are filling in their ballot papers they must ask themselves is there any other process that would guarantee increases of at least 25 per cent over the next 33 months. The answer has to be no," he said.
"Those who are ideologically opposed to national agreements have criticised these proposals, which contain guaranteed and substantial improvements in living standards. But they have nothing tangible to offer in their place."
The Conference of Religious of Ireland, which was part of the community and voluntary pillar, also welcomed the agreement "as a major breakthrough on the issues of poverty, social inclusion and sustainability".