Taoiseach Micheál Martin has urged unions and Government officials to get back in the room after both sides failed to reach agreement at public sector pay talks at the Workplace Relations Commission.
Kevin Callinan, President of the Irish Congress of Trade Unions, has said “we were not able to conclude an agreement with the Government side," despite talks continuing until the early hours of Friday morning.
Mr Callinan had warned that the talks would fail if the Government did not address the gap between pay and current living costs.
Speaking in Tralee on Friday, Mr Martin said: “I would hope that in the coming while the talks could resume and that we could get a resolution.
"First of all, the talks have taken place in a very constructive spirit, the pay issue is important.
"We understand that and that is why Public Expenditure Minister Michael McGrath engaged with the public service unions in respect of their needs and demands for pay rises.
"There is a gap there and we have to take broader issues into consideration in terms of the needs, we have a cost of living package in terms of expenditure [in the budget]."
The Fianna Fáil leader reiterated he would tackle issues like the cost of childcare in the Budget.
He added: “We want resources to do something meaningful in terms of healthcare costs.
"Other costs as well such as social protection, protecting those on lower incomes from the impact of this terrible inflationary cycle brought on by the war in Ukraine.
"We are looking at a broader agenda but pay is a key part of that agenda.
"Therefore we would like to see a resolution and a conclusion being brought to these talks by agreement."
Details of the pay package have not been revealed but it’s understood what the Government was offering to unions was not enough and there is a "significant difference" between the two sides.
The talks began at the WRC on Monday and were initiated after unions triggered a review clause within the existing public sector pay deal 'Building Momentum' due to rising inflation.
Public Expenditure Minister Michael McGrath said: "While it is disappointing that the talks have not yet delivered an agreed outcome, I understand the WRC has asked all sides to reflect on their positions and will continue to engage with the parties.
"For the Government's part we have been clear that the aim is to reach a mutually acceptable solution to the current challenges - one that strikes the right balance and is both fair and affordable to the taxpayer and to public servants.
"However, there are obviously limits to what is possible and sustainable given the many expenditure pressures that Government faces.”
Meanwhile, the Taoiseach also acknowledged the “pointers” from the ESRI’s latest report on what the Government could do to tackle the cost of living crisis.
The State’s economic think-tank had suggested a Christmas bonus-style double welfare payment to help households with soaring bills after their latest report shows almost three in 10 Irish households are in energy poverty.
Mr Martin said: “The ESRI report does give pointers as to the type of approach we could take in the Budget in respect of responding to this cycle of inflation by supporting people in specific circumstances, [I’m] not going to go into specifics here today.
“But certainly, I’ve found merit in that report and a lot of interesting pointers there.
“We all know the issues are pay, tax, expenditure, but also to target is important.. target both those who are most in need and also target areas that people experience very significant cost pressures.
“Childcare being one, housing being the other.”
Get breaking news to your inbox by signing up to our newsletter
