The Government will engage "intensively" with trade unions this week to try to find a way through the current economic difficulties, Minister for Finance Brian Lenihan has said.
Mr Lenihan was speaking as the public sector unions prepared to go into talks today on detailed arrangements for a one-day work stoppage.
The preparations are taking place in parallel with engagement with the Government on its plans to reduce the public sector pay bill by €1.3 billion next year.
The Minister said the Government was involved "intensively" this week with the trade unions to "see if we can find a common, national way forward on our difficulties".
"The simple, stark reality is that we don't have the funds to fund what the public service unions expect. And they are going to have to address that reality with us. If they choose to deny that reality, if they choose to embark on industrial action, for example, all that will happen is further damage to the economy and the people of this country."
Public sector trade unions last night decided that the planned 24-hour strike should go ahead, subject to members approving the action in ballots which are underway. Members of Impact, which proposed the strike, have already voted in favour of the stoppage.
The operation of schools, hospitals and public services generally are likely to be seriously affected on November 24th as a result of the action at proposed Government cuts in the public sector pay bill.
Union leaders see today's talks as an opportunity to look at other measures to avoid cuts in pay.