The Government is to meet trade unions tomorrow to discuss public sector pay and reform.
The breakthrough followed a meeting tonight between the Taoiseach, Minister for Finance Brian Lenihan, Environment Minister John Gormley and the Irish Congress of Trade Unions.
A government spokesman said the meeting was "to explore the potential and appropriate conditions for a renewed engagement between Public Service unions and management, on the development of a comprehensive agenda for the transformation of public services and on a framework for Public Service pay determination".
Both sides agreed to invite Kieran Mulvey and Kevin Foley of the Labour Relations Commission as facilitators to undertake initial discussions with Public Service management and unions.
"While appointed in a personal capacity, the facilitators will draw on the resources of the Labour Relations Commission to support their work," the spokesman said.
Earlier this week, strike notice was served on seven Dublin hospitals as workers vowed to step up the fight against pay reductions.
Civil servants, who have been on a work-to-rule since January 25th in an attempt to hit the Government without causing massive disruption to the public, had also been set to take strike action to target specific departments and services.
Ictu president Jack O’Connor said there was still time to come to agreement and avert next month’s hospital strikes.
“The notice stands and there are four weeks within which to negotiate a fair resolution on the issues and a process will be in place to do that — we don’t wish to take action like this,” he added.
“It’s better that we would talk now rather than later. The issues that are at stake are in our view capable of resolution.” But Mr O’Connor warned that working out the issues would be a challenge.
“The issues are as difficult now as they have ever been. People who work in the public sector have been treated abominably and there’s a great deal to do to undo the damage.”
Additional reporting: PA