A new round of talks began this afternoon at Government Buildings in Dublin in an effort to agree a new national partnership agreement.
Those attending the Government-hosted talks include representatives from trade unions, employers, farmers and the social and voluntary sector.
A Government source said the talks - which she described as "intensive negotiations" - will last for at least a week.
The opposing sides are understood to be discussing a deal proposed by the Government that would see a seven per cent pay increase over 18 months for private sector workers.
It also promised full payment of the increases for public servants recommended by the benchmarking body by June 2005. However, there would be a six-month pay pause for public servants.
The Government also pledged fresh initiatives on housing, the minimum wage and statutory redundancy.
The proposals were drawn up by Mr Ahern, the Tánaiste, Ms Harney, and the Minister for Finance, Mr McCreevy, ten days ago as employers' group IBEC and the Irish Congress of Trade Unions (ICTU) failed to reach agreement on a deal.
