Charities are gravely disappointed by the deferral of pay talks between unions and the Government at the Workplace Relations Commission.
The negotiations are being held in a bid secure a pay increase for staff in section Section 39, 10 and 56 organisations which provide services for the state in areas such as disability support, home care, addiction and homelessness.
Staff in these charities are paid up to 15% less than workers directly employed by agencies such as the HSE.
The Wheel, the representative body for the charity sector, warned that the current two-tier pay system is leading to a recruitment and retention crisis.
It said that this must be addressed by the Government if a threat to essential public services for thousands of families is to be avoided.
"The latest delay by the Government in bringing forward clear proposals is gravely disappointing," its CEO, Ivan Cooper, said,
He urged that the issue "be resolved urgently before the looming holiday season to provide reassurance to the thousands of often highly vulnerable people and families reliant on these services".
Mr Cooper emphasised the need "to provide a fair pay rate for staff delivering these services."
The Disability Federation of Ireland said that organisations providing services under contract from the HSE right across the country are gravely worried about another postponement of the WRC talks.
"Disability organisations were relying on a positive outcome from today's talks to reassure them that essential services will continue to be provided to disabled people," CEO John Dolan said.
SIPTU, the Irish Nurses and Midwives Organisation and Fórsa expressed their "deep and intense frustration" with the Government over its failure to resolve the long-standing pay dispute.
"The strategy of dodge, delay, and deny won't wash with our members and we are demanding that this matter be resolved once and for all," said SIPTU Health Divisional Organiser, Kevin Figgis.
"Our industrial and strike action has only been suspended, and if the Government does not intervene to settle this dispute, we will not be found wanting," Mr Figgis said.
The Department of Health said it acknowledges the important role that Section 39 organisations and their staff play in the health sector, particularly in providing services to people with disabilities and older people.
"While the Government has committed to a process, it is worth noting that Section 39 organisations are privately owned and run, and the terms and conditions of employment of staff in these organisations are ultimately between the employer and the employee," a spokesperson said.
"Further engagement is due to take place at the WRC in the coming weeks," the department added.
