Public service unions are meeting to discuss the Government's initiation to talks on extending the Croke Park Agreement.
Yesterday Mnister for Public Expenditure and Reform Brendan Howlin said the Govenrment would have to secure an extra €1 billion in payroll savings if it is to meet its budget deficit targets by 2015 - and wants to enter negotiations with unions.
If unions agree to go into talks, the first encounter is expected to take place next week.
However sources do not expect substantive talks to commence before details of the budget are announced on 5 December.
The negotiations are expected to cover issues including working extra hours for the same pay, increments, premium pay, outsourcing and procurement.
However, in return the Government would extend the protection from pay cuts and compulsory redundancies provided under the current Croke Park Agreement.
Earlier Mr Howlin said the Government was looking for further savings in the public sector pay bill in a way that protects core pay.
He said some allowances were part of core pay and need to be protected, but others were not.
Mr Howlin said he believes public sector unions will engage in talks over what he called "a Croke Park extension".
He said he was not countenancing unions walking away from the talks.
"They know the desperate state the country is in. They know what has to be done. We've explained it. We need to explain it again to the broad membership," he said.
He said the Government was not invoking the collapse of the current agreement.
"The current agreement is extant," he said, "but I'm inviting the public sector unions to address a real issue that they know exists, and that I've talked about to them, and that is the unallocated further savings that are in the profile of expenditure."
Mr Howlin said the Government is looking at all mechanisms that are best practice in private industry including shared services, better procurement, looking at overtime and premium pay, and restructuring the working week.
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