TAOISEACH Brian Cowen has invited employers and unions to talks on Friday in a bid to restart negotiations on a new national pay deal.
It is understood Mr Cowen will encourage the parties to resume efforts to secure a deal "in the interests of all Irish workers and the economy".
Sources said he was likely to remind employers and union leaders that there had been little acrimony when the original pay talks broke down a month ago, and that all the parties were committed to social partnership.
Sources said when Mr Cowen spoke last week about alternative structures possibly being needed to reach a deal what he was indicating was that the parties would have to be more appreciative of the position of those on the other side of the table, and the position of the Irish economy in a world economic downturn.
The talks on a new national pay deal broke down after unions rejected an offer by employers for a 21-month deal involving a six-month pay pause (11 months and 12 months in the public and construction sectors respectively) followed by a 2.5 per cent pay rise for six months and a further 2.5 per cent increase for nine months.
Unions were also opposed to proposals put forward by employers for an expansion of inability-to-pay procedures.
Minister for Foreign Affairs Micheál Martin yesterday defended the Taoiseach's decision not to personally intervene in the social partnership talks prior to the recent breakdown, and expressed optimism a deal could still be reached.
He said the impasse was not unusual as previous social partnership talks had rarely been agreed within the anticipated time. The break in talks had allowed both sides to reflect on what could be achieved.