The Teachers Union of Ireland is to ballot its members on withdrawing from the Croke Park Agreement.
The TUI said that it made the decision following confirmation by government that allowances payable to all existing public servants are to be reduced.
It said that each government department has been told that it must cut spending on allowances by 5% in 2012, a further 5% in 2013 and by 10% in 2014.
It said that it, along with other teachers' unions the ASTI and INTO, has been told that the 20% cut in spending on allowances payable to existing teachers can include all qualification allowances, all post of responsibility allowances except principal and deputy principal allowances, supervision and substitution allowances and the long service allowance.
According to the TUI, in some cases the pay of teachers could be reduced by over €2,500 per year.
As all the teaching allowances involved are pensionable, the cut would result in a reduction in pensions for serving primary and second level teachers, it added.
It says that the Government has claimed that these cuts are not in breach of the Croke Park Agreement.
