Government sources: Public pay demands ‘must be realistic’

Public sector unions demanding €1.4bn in pay restoration “must be realistic” or risk jeopardising the public finances, Government sources have warned.

Public Expenditure and Reform Minister Paschal Donohoe has told ministers they face hard spending choices because of the cost of special pay deals granted to public servants this year.

Speaking to the Irish Examiner, senior Government sources were keen to downplay the chances of such demands being met, insisting the work of the Public Service Pay Commission, due to report next month, will determine what is doable.