Breakthrough in public sector pay dispute

Talks between representatives of the Government and the public sector unions are to get under way tomorrow morning in an attempt to resolve the dispute over Government pay cuts.

The breakthrough came after the Taoiseach invited officers of the Irish Congress of Trade Unions to meet him, along with Finance Minister Brian Lenihan and Environment Minister John Gormley.

For almost two months, angry public servants have been engaged in a work-to-rule in protest at Government pay cuts.

While unions will not be calling off their industrial action, it is hoped that next week's planned escalation to include strikes will be deferred to allow the talks to take place.

The action is due to escalate with the threat of strikes from teachers, hospital staff, civil servants and others.

Now the Government and the unions have agreed to enter talks to explore the potential for renewed engagement.

That engagement would address the development of a comprehensive agenda for the transformation of public services and a framework for public service pay determination.

A government statement read: 'The meeting was called to explore the potential and appropriate conditions for a renewed engagement between public service unions and management, on the development of a comprehensive agenda for the transformation of public services and on a framework for public service pay determination.'

Health Sector Organiser at SIPTU Paul Bell has welcomed tonight's breakthrough.

However, he warned that the planned two-day strike, which will affect seven Dublin hospitals next month, will still go ahead.

Some 4,500 support staff are to withdraw their labour from 1am on Wednesday 7 April to 1am on Friday 9 April.

Labour Relations Chief Executive Kieran Mulvey and Director of Conciliation Kevin Foley will facilitate the negotiations.

While no firm timeframe for the talks was mentioned, sources suggested a target date of Easter might be possible, given the progress on the transformation agenda before Christmas.