Paschal Donohoe given ultimatum on public sector pay deal

Trade union leaders have issued a direct ultimatum to Public Expenditure and Reform Minister Paschal Donohoe, demanding the Government agree a new collective deal with the public sector or face a free-for-all pay war with workers.

The first round of talks between ICTU, the umbrella body for unions, and Mr Donohoe at Government buildings yesterday was described as “very frank” and “difficult” by sources.

In the wake of a special €40m pay deal for gardaí, union chiefs are awaiting the Government’s next move and whether the proposed Labour Court deal will be accepted by Cabinet as well as gardaí.