Today's Budget means the full implementation of the benchmarking pay awards is achievable by the end of 2003, the public sector union IMPACT has said.
But the union cautioned that a reduction of 5,000 in public service staff numbers - and a hiring freeze - promised today by the Minister for Finance, Mr McCreevy, over the next three years, would hit services.
Mr Peter McLoone, IMPACT general secretary, said: "Mr McCreevy could not realistically have done more today because no agreement has yet been reached in negotiations on public sector modernisation, which is linked to the full payment of benchmarking. But any implication that benchmarking has been abandoned is wide of the mark."
He said capping public sector jobs at current levels was an inflexible "blunt instrument", which meant necessary service improvements would be jeopardised in the health services and elsewhere.
Mr McLoone called for immediate talks on the Government's plan to cut 5,000 public servants over the three years.
"There is no doubt that this will damage public services. But if it is not managed properly the effect could be disastrous in some service areas", he said.
