Unions warn of strike action

Unions were this evening warning of an 'indefinite strike' in protest at the cuts to public sector pay in yesterday's Budget.

Unions are furious after talks on cutting the public sector pay bill broke down last week and the Government proceeded with direct pay cuts of up to 15% in the Budget.

SIPTU President Jack O'Connor said judging by the feedback from union members people were willing to strike long-term.

"I think that the options facing us are pretty clear," Mr O'Connor said.

"I think the depth of anger is such that there are people who would certainly expect that we would name a day, probably some day in February… and people would stop on that day; and we would stay stopped until there was a resolution on it," he said.

General Secretary of the Irish Congress of Trade Unions David Begg described the cuts to public sector pay - of between 5% and 15% - as extremely severe.

Congress said the Budget is too brutal, too quick, without compassion and offers no hope to anyone.

Earlier the Taoiseach had urged unions not to walk away from social partnership.

Brian Cowen's comments came after IMPACT trade union vowed not to engage on reform of the public sector saying it had "sand kicked in its face" one too many times.

In his Budget speech in the Dáil Mr Cowen pleaded with unions to stick with the social partnership model.

"The surest route to secure and stable income levels, and to avoiding future pressures for further reductions is the embracing of change," he said.

"For that reason - while recognising that the current situation of breakdown is an unhappy one, and that we do not have an agreed basis for moving forward - I would urge public servants and their unions to reflect on the potential to build on the progress made last week".

"Dialogue on this basis is the best way to deal with concerns about pay and conditions for the future" he added.

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