Talks at the Labour Relations Commission between representatives of Siptu and Fás, aimed at resolving a dispute about the decentralisation of the State training agency's head office to Co Offaly, broke down yesterday afternoon.
This followed a second day of pickets by union members at Fás centres around Dublin.
Staff at Fás's head office are protesting at a policy of restricting promotion to those willing to move to Birr. Fás head office is due to move to the Offaly town by 2009 as part of the decentralisation programme.
Siptu says its members are being forced to decentralise because of the agency's insistence that employees accepting promotion in its head office, or new recruits to that office, must be prepared to decentralise.
However, FÁS says that as it is due to relocate to Birr by 2009, those seeking promotion to its head office, or looking to join its head office, should expect that their place of work will be there.
The town is in the constituency of both Minister for Finance Brian Cowen and Minister of State Tom Parlon.
It is believed the Department of Finance, which was represented along with the Department of Enterprise, Trade and Employment at yesterday's talks, is determined that a certain proportion of promotions to Fás head office be "ring-fenced" for people willing to move to Birr. A spokeswoman for the department declined to comment.
However, Greg Ennis of Siptu said he was "very disappointed but not surprised" by the outcome of yesterday's talks. He claimed Fás was not being allowed to comply with a recent recommendation of the Labour Court. This found Fás to be in breach of industrial relations agreements, but recommended that the matter be referred to the decentralisation implementation group.
A spokesman for Fás expressed disappointment at the outcome of the talks, but stressed the agency was willing to re-enter discussions during the weekend if necessary. He estimated that 1,000 apprentices and other trainees were affected by yesterday's pickets in Baldoyle, Loughlinstown, South Circular Road and Baggot Street.