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Taoiseach in bid to revive pay talks

Brian Cowen - To meet with social partners
Brian Cowen - To meet with social partners

Taoiseach Brian Cowen has invited the social partners to Government Buildings this week to examine the prospects of reopening negotiations on a new national wage agreement.

Talks on a new deal collapsed at the beginning of August when employers and unions were unable to reach agreement on the terms of a new pay deal.

When negotiations broke down, they were discussing a deal centred on a 5% increase phased over 21 months with a six-month pay pause for the private sector, a 12-month pay pause for the construction sector and an 11-month pay pause for the public service.

However, unions are concerned that the increases which would not match inflation would leave many workers, particularly the low paid, in serious financial difficulty.

The meeting at Government Buildings on Friday morning will take place at 11am.