Unions and employers are today considering a seven point deal proposed by the Government in an attempt to secure a new national wage agreement.
The Irish Congress of Trade Unions (ICTU) is expected to respond to the proposals tonight while IBEC's negotiating group will meet on Wednesday to formulate their response.
The proposals emerged following the intervention after midnight of the Taoiseach and senior Cabinet ministers at the talks between unions and employers.
The plan was drawn up by Mr Ahern; the Tánaiste, Ms Harney; and the Minister for Finance, Mr McCreevy.
Senator Joe O'Toole, president of the ICTU, described the proposals as "imaginative and attractive". He said the deal would mean the same rise for the public and private sectors, but with a six-month pay pause for public workers.
He said they had set out to protect workers rather than to get a "Rolls-Royce deal. What we have come out with is a deal which if it is accepted by us will protect the living standards of our members," he said.
Mr Turlough O'Sullivan of employers' organisation IBEC said a negotiating team would meet on Wednesday to consider the proposed deal.
"From our point of view the proposals certainly represent a package that can be considered by both sides," he said.
He said it was "very significant" that the government had intervened in the plan.
Mr Des Gerahty of SIPTU said it was too early to say whether or not the deal would be accepted.
"Nobody is doing dramatically well but certainly when you look at the state of the economic situation we're in I think they are realistic figures there we can deal with," he said.
