Talks between the Government and trade unions on a new public sector pay deal have ended overnight without agreement.
Union sources say the discussions continued until around 3am this morning at the Workplace Relations Commission (WRC), but broke up as there was too significant a gap between both sides.
Unions had indicated they would be looking for pay rises in or at least 6.75% to compensate for the spiralling cost of living.
The WRC has urged both sides to reflect and consider fresh negotiations.
Union leaders expressed their disappointment as they left the talks.
Kevin Callinan, President of the Irish Congress of Trade Unions said it was "disappointing" that they were not able to conclude an agreement with the Government.
"While some progress was recorded, unfortunately the terms on offer were not something we felt we could recommend. We will now proceed to brief the affiliate unions of the Irish Congress of Trade Unions later this morning", Mr Callinan told RTÉ.
He added: "We note that the Workplace Relations Commission has asked both sides to reflect and we will be available in the event that they decide that further progress may be possible, even at short notice."
Earlier this week, Mr Callinan had warned the talks would fail if the Government did not address the gap between pay and current living costs for the affiliate unions' members.
"I don’t know if that can be bridged and it certainly can’t be bridged in circumstances where the other side isn’t prepared to move and that was the position we found ourselves at this evening," he said.
"The ball is still in the Government's court and it is also a matter for the WRC to make a judgement as to whether or not they believe further progress may be possible," Mr Callinan added.