Minister warns unions to prepare for 'very, very difficult' pay negotiations

A senior Government Minister has warned unions to prepare for "very, very difficult" pay talk negotiations, insisting there is no guarantee a 6% pay rise over the next three years will happen and that further levies on public sector pensions will be sought, writes Fiachra Ó Cionnaith.

Public Expenditure Minister Paschal Donohoe outlined the situation as he risked causing a further rift between Government and unions by stressing "productivity gains" through increased public sector hours and sick leave cutbacks must be retained as part of any future deal.