‘Save €1bn under new deal or face pay cuts’

Taoiseach Enda Kenny has warned that public service workers face forced pay cuts unless unions agree €1bn in savings in an overhaul of the Croke Park deal.

Mr Kenny’s comments come ahead of a memo going to Cabinet tomorrow on voluntary redundancy plans for 2,300 workers and ahead of talks resuming this week on a new deal between management and unions.

Management have proposed pay cuts to some grades, extended working hours, and reduced overtime payments in the talks. Some union chiefs have reacted angrily to the options so far.