A special delegate conference of the State's largest union Siptu has this afternoon voted to defer entering talks on a new social partnership agreement.
The decision was expected after Siptu's executive yesterday decided to recommend that talks be deferred until it receives specific commitments from the Taoiseach about legislative protection for terms and conditions of work.
The issue has blown up over Irish Ferries' intentions to replace over 500 seafarers with cheap overseas workers not subject to Irish labour laws.
Siptu will now ask the Irish Congress of Trade Unions to defer a meeting due tomorrow to vote on whether to enter talks. Congress meets tonight to consider the development.
As the largest union in the State, if Siptu refuses to enter a partnership agreement then it is unlikely Congress could make a deal without them.
The Taoiseach sent a letter to the president of Ictu Peter McLoone at the weekend offering assurances about the protection of employment standards. Mr McLoone, who is general secretary of the public services union, Imapct, has already supported entering talks.
Mr Ahern's letter said the best way to improve protections was for unions to stay within the social partnerships framework but Siptu president Jack O'Connor is insisting on tangible commitments.
Mr O'Connor told delegates at today's conference that more needs to be done to prevent the exploitation of migrant workers and he hit out at employers group Ibec, for its failure to condemn Irish Ferries.
He briefed delegates on the Taoiseach's letter but insisted the clarity in terms of how protections would be formulated and implemented would be needed for Siptu could begin discussions.
However, he warned delegates that the motion to defer entering talks should not be taken lightly.
"Think long and hard before you vote for this motion because it could mean that we could be out of social partnership.
"There would be plenty of forces that would like to see us out of the talks and it could be a long time before we get our feet under the table again," he said.
General secretary of the Technical Engineering and Electrical Union (TEEU) Owen Wills welcomed the decision and said his union also wants "a firm basis" for talks.
"It is now clear that while the Taoiseach Bertie Ahern is anxious to address the problems of gross exploitation of vulnerable migrant workers and protect the wages and conditions of unionised workers, he has not be able to clarify so far how this can be done," Mr Wills said.
The TEEU will vote for deferral of talks if tomorrow's Ictu special delegate conference goes ahead, he added.
Meanwhile, Sinn Fein MEP Mary Lou McDonald today said she would raise the Irish Ferries dispute with EU Commissioner Charlie McCreevy when she meets the Internal Market Commissioner tomorrow.
"We are calling for a directive which would deal with ships operating in European waters under flags of convenience and for minimum labour standards to be set. I also want to ascertain how culpable the Irish Government was in allowing the previous Ferries Directive to lapse last year.
The European Commission is due to respond to inquiries form Ms McDonald in the European Parliament in Strasbourg tomorrow.