Union: tough talks ahead.

IMPACT's Peter McLoone has said that talks between the social partners this week will be the toughest in decades.

The head of the country's largest public sector trade union has warned his members that compromises will have to be made by all sides.

The Taoiseach will hold a series of meetings with unions and employers this week on a new plan to slash Government spending by a further €2bn this year.

Peter McLoone claimed that any effort to cut workers' pay will be resisted and he has not ruled out an extended wage freeze in the public sector.