State gives extra week to save pay talks

The Government has agreed to allow another week for pay talks to be agreed with unions as the deadlock continues over €300m needed in public sector savings this year.

Failure to agree on a new deal could see pay cuts for some workers forced through in just three weeks, union chiefs have been warned.

Public Expenditure Minister Brendan Howlin said last night that he had given negotiator Kieran Mulvey until next week to find an agreement with unions.