Both yesterday and today, Tánaiste Mary Coughlan refused to rule out further reductions in Government salaries due to the budgetary situation.
However, Mr McLoone, who is chairman of the ICTU Public Services Committee, said the Government had to recognise that that well was now empty.
He said that over 250,000 people providing public services were earning less than €60,000 a year gross even before the recent pay cuts reduced their earnings by up to 15%.
He warned the Government not to react provocatively to the union's work to rule by taking people off the payroll.
Mr McLoone said there was potential for the current dispute to escalate, adding that this weekend people would be seeing the impact of the cuts in their payslips.
He said that the only way to solve the current dispute was to reach agreement on transformation, but that would involve a challenging long-term agenda which must include restoration of pay levels.
Mr McLoone described Government and unions as being poles apart due to a loss of trust and confidence.
He said a solution would only be found if they could get round the table again.
However, he said there has been no indication from the Government side that they are interested in resuming talks.
CPSU step up work-to-rule protest
Lower paid civil servants belonging to the CPSU have stepped up their campaign of work-to-rule.
CPSU members refused to answer phones in their offices throughout the Dublin area this morning, and in government offices in counties Meath, Monaghan, Louth and Cavan this afternoon.
The move is part of the public service work-to-rule in protest at the government pay cuts for state employees.
Yesterday, the CPSU said its 13,000 members would be escalating their campaign of opposition to the cuts with increased numbers of unannounced stoppages or office closures.
However, so far there are no reports of significant impact on the public.
