16/09/2008

Crucial Talks Enter 'Crunch Time'

As the new national pay deal talks reach their final stages the Taoiseach has warned his party the 'Credit Crunch' could yet unleash havoc across the world.

The difficult negotiations are expected to conclude on Tuesday following months of talks, and Brian Cowen is scheduled to attend the discussions in an effort to secure an agreement.

On national radio on Tuesday, Mr Cowen said: "Today is the crunch time really because we are getting down to the pay issues and the numbers."

The talks, which are trying to secure a pay agreement for public sector workers, have already breached a one week deadline, with unions and employers due to spend another day at government buildings in a final push for a settlement.

Union leaders have said some progress is being made, but Ibec Director General Turlough O'Sullivan said it was "far from certain" a deal would be struck.

Mr Cowen's recent comments are believed to indicate the government expects workers to accept less that what they are asking with consistent references to the deterioration in public finances, and poor economic conditions.

The news comes in the shadow of 4,000 jobs in Ireland's Hewlett Packard plants now coming into jeopardy following the multinational computer manufacturer's announcement it is to cut 24,600 jobs worldwide.

(DW)

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