Employers and union representatives have adjourned negotiations on a national wage agreement at Government Buildings in Dublin.
Arriving for the talks, both sides had acknowledged that a substantial gap remains between them.
The employers’ group IBEC’s Director General, Turlough O' Sullivan, said that workers had done well out of the first phase of Sustaining Progress with an increase well ahead of inflation.
Mr O’Sullivan said they would have to take account of that in the current negotiations.
The ICTU General Secretary, David Begg, said the talks were at a critical point.
While both sides acknowledged the Government has put nothing on the table, Mr Begg said that the union's job was to get a decent pay increase for workers and that its primary business was with the employers.
The Acting General Secretary of the TEEU, Eamon Devoy, said there would be no chance of a deal unless the employers took on board the expectations of workers and increased their offer beyond inflation.
The first phase of Sustaining Progress had included a 7% pay rise paid over 18 months.
