Teachers and the Government are to table proposals today to set up a forum to deal with the 30 per cent pay claim from the Association of Secondary Teachers, Ireland (ASTI).
The first day of talks with the Government-appointed mediator, Mr Tom Pomphrett, were described as "satisfactory" by sources, although officially a news blackout is operating until the weekend.
Yesterday's talks focused on the outlines for setting up a forum, and detailed proposals will be dealt with later this week.
The ASTI hopes to have a forum or negotiating process for its central executive council (CEC) to vote on by Saturday.
Differences within the union flared up as the talks began.
A letter was circulated by an opponent of the former president, Ms Bernadine O'Sullivan, which said she did not lose any money when the Government docked three days' pay from teachers for work-to-rule action.
Ms O'Sullivan confirmed last night that her salary had not been docked, but she said the letter's only function was to damage her.
Ms O'Sullivan works at the special school for the deaf in Cabra, Co Dublin, and consequently is paid by the primary section of the Department of Education.
Most ASTI members were docked money because they are paid by the second-level section.
Ms O'Sullivan was among a group of ASTI members who recently rejected talks with the Government because it attached several conditions to refunding the docked money.
A letter from Ms O'Sullivan to members of the CEC in which she says her recent appearances in the media were misrepresented was also circulated yesterday.
She said her decision to give an interview to Charlie Bird of RTE on Saturday 6th - the day the Government's offer was rejected - was only taken because the reporter rushed at her with a microphone.
Her decision to do the interview was criticised by some ASTI members because she is no longer president.
However, Ms O'Sullivan defended the decision and explained the circumstances of her comments to the camera crew.
"In an instant I had to make a judgment call. Would I reply and defuse the situation, or continue on to the ladies' and risk Mr Bird walking beside me and questioning me about a leadership crisis, then turning to the camera and saying the former president refused to comment on the implications for the leadership."
She added: "Since August 1st, despite being a media co-ordinator, I have refused all requests for interviews.
"When I was put on the spot last weekend, I broke my silence because I believed it was in the best interests of the ASTI and I conveyed the message that the result of a democratic vote does not constitute a lack of confidence in our negotiators."