Talks at Government Buildings on an economic recovery plan have adjourned for the evening and will resume at 3pm tomorrow.
Public sector unions are this evening examining the framework for a National Recovery Plan presented to them by Government today.
The framework agreement makes a number of radical proposals to cut public spending by up to €2bn.
SIPTU said reaching agreement by a deadline of next Tuesday will be difficult.
Both ICTU and IBEC say the framework document is fair and balanced, but agreeing the detail may not prove to be so easy.
Attempts to reach that agreement will continue tomorrow and over the weekend.
Meanwhile, the General Secretary of the country's largest public sector union IMPACT has warned his members that the Government might impose a 10% pay cut on salaries if the recovery plan cannot be agreed over the coming days.
Peter McLoone said that unions have strongly resisted what he called the Government's preferred option of immediately cutting all public service salaries by 10% as part of its effort to reduce public expenditure by €2bn this year.
However, he fears the Government would impose this solution without agreement if a deal cannot be done soon.
Mr McLoone said that while all the alternative options were unpalatable, the union must work to influence decisions so that those least able bear the smallest burden.
He also said it was important to safeguard the value of pay and pensions into the future.
He said this inevitably meant the union would have to discuss options that would have been entirely out of the question just a few weeks ago.
They could include changes in overtime and premium payments, and significant additional staff contributions to the cost of their pensions.
Details of framework emerge
The framework for recovery acknowledges the need to cut the public pay and pensions bill, maximise sustainable employment and maintain high priority public investments.
It also proposes that the Commission on Taxation look at measures to broaden the tax base.
Controls on senior executive pay in banking are to be introduced and the plan aspires to look at the moderation of executive pay in other business sectors.
Tonight IBEC Director General Turlough O'Sullivan said the time for action is here.
After initial discussions on the framework and the mapping out of the negotiation process the tough work of reaching agreement continues over the coming days.
The Government predicts that 120,000 jobs will be lost between now and 2010.
Tax deficits will reach €8bn this year and a further fall is projected next year.
Under the framework, it would be agreed to reduce the level of exchequer borrowing to below 3% by 2013.
It states this would be achieved through adjustments in spending and taxation adjustments.
The Commission on Taxation would be tasked with coming up with ways to increase tax revenues by September of this year.
Any changes would be fair and equitable with the higher proportion falling on higher incomes.
Social partners react to framework
Meetings got under way at Government Buildings this afternoon.
Going into the talks, IFA President Padraig Walshe said farmers feel they have given their fair share already.
He claimed farmers had already made a significant contribution to the recovery of the economy.
Mr Walshe said the Budget last year had resulted in a 5% reduction in income for farmers.
'Farmers support partnership and are committed to the process, and what is needed now was the restoration of competitiveness to the economy generally.'
The Secretary General of the Irish National Teachers Organisation described the framework document presented by the Government as fair and equitable.
John Carr stressed he now wanted to see what contribution people other than unions and workers have to make to the talks process.
'It is now clear what the Government wants and it was now up to all sides to make known what they are willing to do to help reach those aims,' he said.
SIPTU General President Jack O'Connor said unions need to see that the better-off in society will make a contribution to the effort to address the slide in the economy.
While Irish Nurses' Organisation General Secretary Liam Doran said the framework may open the door for talks, but that a lot of hard dealing had yet to be done.
The Minister for Foreign Affairs said it was extremely important that agreement be reached.
Micheál Martin said the challenges posed to the country deserve a national response.
He said it made sense that everyone work together in social solidarity to bring the country through the difficulties currently faced.
He said the Taoiseach, Tánaiste, Finance Minister and the Government generally were committed to working with the social partners.
