Ahern launches social partnership talks

The Taoiseach, Bertie Ahern, has officially launched talks between the social partners on a successor agreement to the Programme for Prosperity and Fairness.

The talks will be attended by the Government, trade unions, employers and voluntary groups.

Mr Ahern said this morning that the international economic environment has become more challenging in recent months and said people should moderate their expectations for a new agreement.

The Tánaiste, Mary Harney, made a similar statement yesterday, but unions have made it clear that they will not accept employers' calls for a pay freeze or pay rises below the level of inflation.

SIPTU vice-president Jack O'Connor said: "They've been indicating very clearly that they expect workers to accept a cut in living standards and that simply won't happen.

"We won't agree to that and if they insist on adhering to that line, we will not have an agreement."