Pay talks continue at Government Buildings

Talks between aimed at agreeing a new national pay deal are continuing this afternoon at Government Buildings.

Talks between aimed at agreeing a new national pay deal are continuing this afternoon at Government Buildings.

There was no sign of agreement between the social partners as the talks dragged on late last night. An unofficial deadline of today had been set for reaching agreement.

Taoiseach Brian Cowen is available to broker a deal today if the gap between the sides can be narrowed.

Pay remains the major issue dividing the two sides, with the unions believed to be seeking a pay rise of about 5 per cent a year to compensate for inflation. Employers insist that such an increase cannot be afforded in the current economic climate.

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The current national pay deal Towards 2016provides for increases of 10 per cent over 27 months.

But unions have argued that this award was effectively eroded by higher than anticipated inflation.

The final 2.5 per cent public sector phase of this agreement is due to be paid in a month's time and all sides had hoped for an agreement today so that there would be clarity on pay policy for the next two to three years.