The Taoiseach, Mr Ahern, today warned public sector unions that benchmarking awards would be conditional on them refraining from industrial action.
Addressing delegates at the ICTU conference in Tralee, Mr Ahern said the payment of the awards poses a significant challenge for the credibility of partnership.
He said in a difficult public finance situation, "such a large step-adjustment in public pay warrants a step-increase in flexibility and self-adjustment towards new systems of continuous improvement"
He said: "The payment of the final 75 per cent of benchmarking is conditional on real and verifiable outputs in relation to modernisation and flexibility."
The Sustaining Progress agreement is clear, he said, that payment depends on co-operation with flexibility and ongoing change and the absence of industrial action in respect to matters covered by the agreement.
Mr Ahern said there was a perception in society that increased expenditure has not been translated into sufficient improvements in the quality and level of services.
"The quality of public services, as well as the effectiveness of our public institutions, is a key benchmark of our national competitiveness," he said.
"While the Government is committed to further investment over time and as resources allow, the reality is that the answer does not just lie in increased expenditure."
"Progress also depends on increased productivity in the public sector," he added.