Workers who reject pay deal may lose out on increases

Workers who vote to reject the widely accepted new public sector pay deal may be frozen out of pay increases and other benefits and face financial penalties, Finance Minister Paschal Donohoe has warned.

The warning puts teachers on a collision course with the Government after two unions voted to reject the deal and a third, which has yet to ballot members, has also recommended rejection.

Public sector unions affiliated to the Irish Congress of Trade Unions (ICTU) voted by more than 80% yesterday to pass the deal which comes into effect from January 1.