The Taoiseach Mr Ahern is to meet leaders of the Irish Congress of Trade Unions (ICTU) this afternoon to discuss measures to curb inflation.
He will be accompanied by the Tanaiste, Ms Harney, and the Minister for Finance, Mr McCreevy, and there is a strong expectation in trade union circles that significant steps will be taken to protect workers' living standards.
This morning the ICTU executive is meeting to discuss the situation. It is expected to pass a motion calling for a review and renegotiation of the Programme for Prosperity and Fairness (PPF) if the Government does not honour commitments to protect workers' living standards.
Reductions in indirect taxes on key consumer items, price controls, housing and next December's Budget will be top of the ICTU agenda. Progress in these areas will be critical to saving the PPF.
Yesterday the vice-president of ICTU, Mr Joe O'Toole, warned that "time is running out for the PPF unless the Government takes action on inflation". He added: "Inflation is about prices, and control of inflation is about controlling and reducing prices".
If progress is not made in today's talks at Government Buildings, Mr O'Toole said his union, the Irish National Teachers Organisation would fully support moves to call a special delegate conference of ICTU "to demand a review, including a renegotiation of the PPF. The ball is now in the Government's court and it would be inexplicable were they not to take clear and effective action."
The general secretary of ICTU, Mr Peter Cassells, said congress was "determined that workers, their families and others on fixed incomes such as pensioners get their fair share of the prosperity being generated in this country. At the meeting tomorrow ICTU will be seeking an absolute commitment that improvements in living standards in the PPF be achieved."
He identified reductions in indirect taxes and duties, new measures in the December Budget and a "speeding up" of childcare programmes as areas where progress was needed. "I will recommend to the executive this morning that in the event of improvements in living standards, including controls on inflation and compensation in the Budget not being delivered, the executive seeks a review of the PPF."
The general secretary of IMPACT, Mr Peter McLoone, who also chairs the public services committee of congress, said "the Government has to take measures not just to protect this agreement but the fabric of social partnership itself. We've identified the problem and the measures to address it. It's up to them to respond."
He said the process of "re-engaging" the Government on the PPF had already begun in the discussions with senior civil servants.