The leadership of the country's largest union, SIPTU, has warned its 200,000 members to prepare for effective action to resist pay cuts and other attacks on the quality of employment.
The Government is due to respond to employers and unions this week with its proposals for economic recovery through social partnership.
However in a letter to members signed by President Jack O'Connor, Vice President Brendan Hayes and General Secretary Joe O'Flynn, they say they are not optimistic about achieving a social solidarity pact with the Government and employers to address the challenges facing the country.
They say any potential such pact would have to deal with concerns of working people, including safeguarding existing jobs and pension entitlements and protecting them against home repossessions.
However, they believe the Government has three priorities: rescuing the banks, which they see as avoiding nationalisation no matter how much it costs, correcting the Exchequer deficit through extensive cuts in public services and improving competiveness, primarily by cutting pay across the economy.
In those circumstances, the three union leaders say it would be wise to prepare for effective action to resist pay cuts and other attacks on the quality of employment as well as to try to leverage agreement either locally or nationally.
They say campaigns should be innovatively designed to minimise disruption to members and the general public and to maximise pressure on employers and the Government.
They fear that otherwise such campaigns would play into the hands of those who wished to divide worker against worker to facilitate developments like outsourcing.
Separately, the Public Sector Committee of the Irish Congress of Trade Unions was to meet this afternoon to consider the status of the partnership talks.