Trade unionists are now ready for a ballot on strike action by the public sector.
Talks between the Government and unions broke up overnight, after a deal offering public servants a 8.5% pay increase over a 30-month-period was rejected.
Under the deal, lower paid workers would have seen their pay increase by 12%.
In a statement to members, Fórsa General Secretary Kevin Callinan said the offer was not sufficient given the high rate of inflation in recent years.
“Throughout this process we have been clear that any agreement must address the cost-of-living pressures our members face on a daily basis,” he said.
“The Minister has stressed that the monthly rate of inflation has slowed – but that does not mean costs aren’t going up.”
Mr Callinan said public sector workers “deserve to be treated with respect” and that the current offer was “neither fair, nor credible”.
He said the wording of a ballot on industrial action had been agreed and the union was now poised to begin a ballot for industrial action, although he stressed they remain “ready and available to continue negotiations” and he still hopes a “decent deal” can be achieved.
'The correct balance'
Minister for Public Expenditure Paschal Donohoe said he was "disappointed" the deal had been rejected and said any pay increase for the public sector must be "affordable".
"The Government is on record as saying it wishes to reach an agreement with public service unions and associations that strikes the correct balance between continued investment in the delivery of our public services and an approach to public service pay that is fair and affordable," he said.
"We have made a proposal in the context of the negotiations which we believe achieves these objectives.
"I encourage trade unions and associations to take a period to reflect and the Government remains available to enter into further discussions with public service unions and associations at the appropriate time."
There are over 370,000 full-time public servants in Ireland.
Main image: Kevin Callinan