Minister for Enterprise, Jobs and Innovation Richard Bruton has rejected suggestions that his proposals to reform wage setting mechanisms could create a rift between Fine Gael and Labour.
Mr Bruton's proposals would see pay cuts for low paid workers due to the loss or reduction of overtime and Sunday premium payments.
However, Mr Bruton said the reforms were essential to protect jobs in sectors which had suffered carnage in recent years.
The minister's proposals to reform the Joint Labour Committees' wage setting system go far beyond what was suggested in the Duffy Walsh report.
They include reducing or eliminating overtime and Sunday premium payments - triggering effective pay cuts for over 200,000 workers in sectors like retail grocery, security and hairdressing.
Unions have pledged to resist the changes to defend low paid workers.
The union that represents retail and hospitality sector workers warned that plans to scrap Sunday premium rates could drive more people into poverty.
Mandate's Deputy General Secretary John Douglas said it is not fair on those worst off.
However, IBEC Director of Human Resources Brendan McGinty accused unions of an element of paranoia that if all agreements were unwound people would be worse off overnight and pay would be cut.
He said Sunday should be treated like any working day and that it was an antiquated work practice for employees to get extra pay.
The opposition also criticised the proposals.
Fianna Fáil TD Éamon Ó Cuív said the plans would have a detrimental and serious effect, while Sinn Féin's Pearse Doherty said there is a real fear among the lowest paid that their income is going to be cut.
People Before Profit's Richard Boyd Barrett said Minister Bruton was engaged in an outrageous pre-emption of the impending consultation process.
Even Labour backbencher Colm Keaveney warned of the burden the reforms would impose on families.
Consultation process
This morning, Minister for Social Protection Joan Burton warned that lower paid workers could be driven to the dole if wages in sectors such as hospitality, retail and hairdressing are cut.
Speaking on Morning Ireland, Ms Burton said there was no difference between the two coalition parties on the issue, as it was part of the Programme for Government.
However, she said that her Department is looking at the impact of the proposals on low paid workers, and the area needed a balanced decision from Government, employers and trade unions.
The Minister for Public Expenditure and Reform has said it should not be assumed that final decisions on changes to pay agreements for those on low pay have been made by the Government.
In the Dáil this morning, Brendan Howlin said a consultation process will get under way with the social partners and that no pre-determined outcomes have been agreed.
He said after that consultation, the matter will go back to the Government for a decision.
Taoiseach Enda Kenny also reiterated that point, saying that the review of wage deals was consultative and did not have a pre-determined outcome.
The Government would make decisions based on these findings, he added.
Joint Labour Committees
The Duffy Walsh report advocated retention of Joint Labour Committees' wage setting mechanisms to protect vulnerable workers and found that no significant job creation would result from their abolition.
Instead, the authors advocated reforming the system.
However, Richard Bruton's proposals would restrict the scope and protections of JLCs far beyond what Duffy Walsh recommend.
In addition, there are proposals to change the scope of a JLC with or without the consent of all the parties.
The Minister has allowed until 10 June for discussions with employers, unions and the European Union/International Monetary Fund troika.
He intends to bring proposals for an action plan to Cabinet around 21 June.
