The Government may reach agreements with individual unions or sectors of the public service on reducing the State’s pay and pensions bill in the absence of a collective deal, according to sources close to the talks.

They indicated last night that the Government believed that an overall deal embracing all public service unions and groups was now remote.

The Government has given the Labour Relations Commission (LRC) until Monday to see if a negotiated agreement can be reached with different unions and groups.

Sources said it seemed as if unions or sectors which reached agreement on cutting the pay bill would receive the protections set out in Croke Park I and Croke Park II.

The Government is also taking steps to prepare legislation if the latest attempt to revive Croke Park II fails to yield a deal.

Although Minister for Public Expenditure Brendan Howlin moved last night to give the LRC six more days to pursue talks with union leaders, a Coalition spokeswoman said discussions on legislation were under way with Attorney General Máire Whelan.

“While no Government decision has been taken regarding the nature of any legislation to be tabled, it is the case that initial discussions on the options available to Government have commenced,” said the spokeswoman.

The mechanisms under discussion already known include an indefinite suspension of pay increments in a package which would protect the core pay of workers earning less than €65,000.

LRC chief Kieran Mulvey met Mr Howlin last night and said he had been asked to conclude the latest engagement by Monday next so the Minister could brief the Cabinet on Tuesday.

Mr Howlin said the LRC wanted additional time to explore with the trade unions and relevant management “potential areas for progress that have emerged as part of the above engagement process”.

Prospect of success
Asked whether there was any realistic prospect of success, Mr Mulvey said that was difficult to predict.

“It’s very hard to say in industrial relations whether progress can be made or not but certain times have their own dynamic,” he replied.

“Certainly I think over the next three or four days we’ll just have to see to what extent and degree that the unions have taken on board the message we’ve conveyed on behalf of Government and also the message that we have conveyed to Government on behalf on the unions as well.”

Sources close to the Government said the LRC chief had maintained that some unions had engaged meaningfully with him but others had not.

Mr Mulvey said the LRC was available to any unions that wished to engage with it if they had imaginative or creative views to express to it.

However, he indicated that the engagement would remain fixed on the Government’s demand to cut the public service pay bill by €1 billion starting this year.

“The parameters to this are very very clear,” he said.