Unions and employers have resumed talks on a new national pay agreement in Government buildings in Dublin this afternoon. Talks are expected to last throughout the evening.
With the 18-month Sustaining Progress pay deal due to expire on June 30th, both sides and the Government are under pressure to reach an agreement.
Unions have warned that they will return to free bargaining in the event that no new agreement can be reached.
The talks are being chaired by talks chairman Mr Dermot McCarthy, the secretary-general of the Department of the Taoiseach.
Employers are strongly opposed to union demands for a special flat rate increase of €20 a week for those on low pay in addition to any percentage agreement.
Although similar flat rate increases have been part of previous agreements, there was no such provision in Sustaining Progress. For the unions this is a key issue and it has developed into a major sticking point.
Neither side has as yet revealed what level of pay increase it would be prepared to accept under a new agreement.