The Taoiseach, Mr Ahern, has acknowledged to trade union leaders that the Budget lacked balance and he gave them a commitment last night that he would become more actively involved in negotiations on a successor to Partnership 2000.
However, it will be next week at the earliest before it becomes clear if the rift created by measures that have left low-paid workers relatively worse off can be healed.
Members of the General Purposes Committee of the Irish Congress of Trade Unions met Mr Ahern for over an hour in the first of a series of meetings the Taoiseach held with the social partners at Government Buildings. The president of SIPTU, Mr Des Geraghty, attended the meeting in his capacity as a member of congress.
Afterwards, the ICTU general secretary, Mr Peter Cassells, said trade union leaders had told Mr Ahern they were seriously concerned at overall Budget strategy, which had been at variance with the report of the National Economic and Social Council. The low paid did very badly and Mr Cassells said that ICTU had asked for that to be rectified.
The Taoiseach had assured them that the Government was committed to the NESC strategy and would be addressing it in the next Budget. "The Taoiseach said that he himself would take a much more active role in any future talks," Mr Cassells added.
Mr Des Geraghty said that the unions were going to work with the Government to try to get talks going again. "I believe the Government now realises there is a serious problem, and that's a good start."
Both men rejected recent comments by representatives of the Irish Business and Employers Confederation that the introduction of the National Minimum Wage in April would meet the needs of low-paid workers for increases in incomes.
Mr Cassells said congress wanted low-paid workers out of the tax net as part of a strategy to tackle social exclusion. Mr Geraghty said that the national minimum wage would only affect a very small number of people. The largest group adversely affected by the Budget were those earning £10,000 to £14,000 a year.
On the question of extra allowances for carers in the home, Mr Geraghty said that the concept was a good one, but its application in an equitable way was complicated. The present proposals did not help the low paid or low-income groups generally.
Representatives of the voluntary and community pillar were highly critical of the Budget when they met Mr Ahern.
The general secretary of the Irish National Organisation of the Unemployed, Mr Mike Allen, said the new £3,000 allowance for carers would widen the income gap and create new unemployment traps. He said that if the Government had the resources to come up with "balancing measures" in the Budget for carers in the home, it could also come up with balancing measures on for those on low pay and social welfare.
The voluntary and community pillar is to resume discussions with officials in the Taoiseach's department today, but talks on a new agreement are some way off.
The executive of the ICTU meets today to review the situation and SIPTU's national executive meets on Friday. Other unions are also expected to raise their concerns about the Budget and outstanding issues from Partnership 2000.
It will no longer be simply a question of whether SIPTU accepts the Government is acting in good faith and is willing to return to negotiations. Other unions will also be anxious to identify problems resulting from the Budget. Last night, for instance, the Civil and Public Service Union said paid parental leave should be part of any "rebalancing proposals targeted at spouses in the home".
Even if ICTU members agree to make an increase in PAYE allowances their priority, it will prove expensive. An extra £500 for every employee would cost the exchequer £125 million and still not remove people on the proposed national minimum wage of £4.40-an-hour from the tax net.