Talks between public sector management and unions on cutting an extra €1bn from the State payroll are continuing today.
Premium payments for working evenings and weekends, outsourcing, and wage cuts for higher paid public servants are among the controversial issues being addressed today.
The Minister for Jobs, Enterprise and Innovation Richard Bruton has said any public sector cuts will be fair and balanced across all areas.
Speaking on RTÉ's The Week in Politics this afternoon, he said people on higher pay will have to carry more of the burden.
Meanwhile, the head of Ireland's largest union has warned that it will go to war if a reasonable deal on public sector pay is not reached.
SIPTU President Jack O'Connor said that what he called the "hawks" on the Government side should wake up to the reality that if they push unions into a war, it will not be conducted over the airwaves or in sports arenas.
He said that it would involve protracted strikes and all that goes with them.
He warned that while the unions might not win, the Government would not win either.
Mr O'Connor said members were justifiably concerned about the Croke Park process, adding that some were doubtful about whether they should be involved in the talks at all.
He said they were facing a Government with an overwhelming parliamentary majority which was itself confronted with a crisis that continues to threaten the very solvency of the state.
In a criticism of last Monday's rally of members of the 24/7 Frontline Alliance, he said it would take a great deal more than the expenditure of hot air and windy rhetoric in basketball arenas to achieve a successful outcome in this battle.
He said the burden on public servants and recipients of state services could be alleviated through a substantially greater taxation contribution from the rich.
However, he acknowledged that 60% of those who voted in the last elections supported parties opposing a wealth tax or higher tax rate on high earners.
He said it would be wise for all sides to explore the possibility of a negotiated settlement, which he said would be better than a legislated pay cut.
Speaking this morning, IMPACT spokesman Bernard Harbour said achieving an agreement will be difficult.
"IMPACT have said from the beginning of the process that we thought this would be the most difficult negotiation we have ever done and it has proved to be the case," he said.
"The unions have taken the view that it is better to be in the process to try to shape that because the Government have said that one way or the other they're going to make the savings.
"We'll see today whether it's possible to come out with something that can be successfully put to ballot and this is something that the management side has to remember that whatever comes out the other end of this ultimately has to go to ballot and if people don't accept it then we don't have an agreement."
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