Analysis: The Taoiseach's intervention injected fresh momentum into the pay talks. Chris Dooley, Industry and Employment Correspondent, reports on how the deal was done
Like the Battle of the Somme is how one participant in the national pay talks described progress in the negotiations before the intervention of the Taoiseach, Tánaiste and Minister for Finance.
"Every centimetre was being conceded with the utmost reluctance on both sides," the source said last night.
Unions and employers, having come close to reaching agreement on two critical non-pay issues by early on Sunday, were still crossing the Ts and dotting the Is long after sundown.
The intention had been to get the two issues concerned, union recognition and the employers' demands on compliance, out of the way early and concentrate on the really difficult issue - pay.
That proved overly ambitious, however, and as the hours ticked by, a compromise on all three issues continued to prove elusive.
The Taoiseach, Mr Ahern, had been in contact with the talks chairman, Mr Dermot McCarthy, throughout the day.
If he was to intervene, it would have to be on Sunday as he was flying to Mexico yesterday to begin a nine-day trade mission. Mr Ahern, the Tánaiste, Ms Harney, and the Minister for Finance, Mr McCreevy, decided to meet and discuss the possibility of a Government intervention.
The three, who met at a venue away from Government Buildings, were briefed by Mr McCarthy and his team at about 8 p.m.
For the next 2½ hours, the three and their officials drew up the seven-point plan which was to break the logjam in the talks.
By the time the proposals were ready at 10.30 p.m., the talks had not yet reached a stalemate.
The gap on pay remained wide but the two sides continued to inch towards an agreement on compliance and union recognition.
Nevertheless, the intervention was timely and injected badly needed momentum into the process.
Both sides claim the proposals on pay were a disappointment - perhaps an indication that the plan was balanced.
Employers were not getting the pay pause they say many of them will require; for unions, the terms look set to be significantly below the rate of inflation.
Other elements of the plan, however, were strongly welcomed. Unions had made recognition and had improved statutory redundancy, two of the most important non-pay issues in the talks, and now had real progress on both.
An anti-inflation strategy was a major issue for both sides, while the initiative on housing was attractive, not only to the unions, but also employers, because of the effect of rising house prices on wage expectations.
Under the housing initiative, it is expected that about 10,000 "affordable houses" will be provided, using funds from the soon-to-be-established National Development Finance Agency.
Having given both sides several hours to digest the proposals, Mr Ahern and his colleagues entered Government Buildings at about 1.20 a.m.
The Taoiseach addressed both sides together in the Italian Room for about 15 minutes, emphasising the contribution of social partnership to the State's economic success and the importance of maintaining it.
Mr Joe O'Toole, the president of the Irish Congress of Trade Unions, was first to respond, followed by Mr Turlough O'Sullivan, director general of the employers' body, IBEC.
Both welcomed the initiative and responded positively, in general terms, to the Government's proposals.
Whether each sides's respective membership will be equally positive and social partnership survives for at least 18 more months, remains to be seen.