Unions reacted with extreme caution to the proposed partnership deal drawn up early yesterday following the intervention of the Taoiseach and senior Ministers.
A number of private sector unions in particular expressed disappointment at proposed pay rises which are likely to be below the rate of inflation. While benchmarking made the deal more palatable for public servants, not all public sector unions were happy with the outcome either.
Most trade union leaders contacted by The Irish Times, however, said they would need to see the detail of the proposed agreement before adopting a position.
Of particular concern was the compromise agreed by negotiators on two critical non-pay issues: union recognition and the employers' compliance agenda, requiring unions to adhere to the terms of any new deal.
Negotiations to finalise both of these elements were continuing last night, and those not directly involved in the talks were still awaiting the outcome.
Senior union leaders, including Mr Des Geraghty, the president of SIPTU, insisted that the progress made on recognition was of real benefit to union members.
As part of the seven-point plan put forward by the Taoiseach, Mr Ahern, and his colleagues, new legislation is to be introduced enhancing existing provisions under which union recognition disputes are resolved, through the Labour Court if necessary.
Unions believe the new measures will speed up a process which has proved cumbersome to date and is, they claim, open to abuse by recalcitrant employers. The key question is whether the progress on this issue, as well as the Government's initiatives on housing, statutory redundancy and the minimum wage, will be enough to persuade unions to agree to a less-than-satisfactory pay deal.
Seven per cent in phases over 18 months is, for example, what the Irish Bank Officials Association had decided to seek in a single payment over 12 months.
Mr Larry Broderick, the IBOA general secretary, said the association would evaluate the agreement in its overall context.
Taken in isolation, however, the pay element was "disappointing", he said. "A lot will depend on the terms of the compliance and recognition elements."
Inclusion of the pay rises recommended by the benchmarking body, averaging 8.9 per cent, make the proposed deal appear more attractive for public servants.
A calculation by IMPACT, the largest public service union, showed that by June 2005, a clerical or administrative civil servant on grade four of the pay scale would have received a cumulative pay rise of 16.27 per cent.
In a letter to members, the union's general secretary, Mr Peter McLoone, said a final position would not be taken until all negotiations were completed.
Significantly, however, he said the pay increases proposed were "the best that can be achieved".
Unions whose members fared badly from the benchmarking process were unhappy that final payment would be delayed until June 2005, and were less enthusiastic about the proposed deal.
