THE GOVERNMENT is expected to issue invitations to the social partners to take part in talks on plans for economic recovery and to stabilise the public finances next week.
There has been widespread speculation that the Government will seek to extend the current 11-month pay pause in the public service or even introduce pay cuts in some cases as part of the forthcoming talks. Under the current national pay deal, over 300,000 public sector staff are due to receive a 3.5 per cent increase next September.
Last week the head of the country's largest public-sector trade union told staff and senior activists that "an incomes policy" would undoubtedly form part of the talks between the Government and social partners on a national recovery plan.
In a letter to senior figures in the Impact trade union, general secretary Peter McLoone said this would "present enormous challenges".
"This current crisis has not arisen because the earnings of the vast majority of those in employment are too high, and it follows that a reduction in incomes will not resolve this crisis," he said.
However, nobody had as yet mentioned, never mind discussed, the issues of pay or pensions, he added.
Mr McLoone said that over the next few weeks, discussions between the social partners would "dig deeper into the detail of what needs to be done to get an appropriate rescue plan agreed".
At the forthcoming talks the Irish Congress of Trade Unions (Ictu) is expected to press the Government for new measures to assist home-owners who default on mortgage payments on their homes.
The unions are expected to look for such home-owners to get a reprieve of 18 months before repossession by the banks.
Ictu is also likely to press the Government to take action to prevent pension schemes from collapsing as a result of the recent economic turmoil.