Minister wants 'new engagement' with unions

Speaking after a meeting with union leaders, he said a "new form of engagement" was necessary.

But he ruled out a return to social partnership in which the Government agreed deals that set wages for private and public sector workers. "I do believe there is a need for a new form of engagement between Government and the Irish trade union movement," he said, following a meeting with the Irish Congress of Trade Unions' executive committee.

"I was very clear that I believe the social partnership model of the past, where social partnership played a role in wage setting and where the primary role of government in relation to budgetary policy was shared, are not areas that I will be returning to."

Meanwhile, Fórsa urged the Government to give workers a €70-a-year tax relief on their trade union subscriptions in the next budget. Organiser Joe O'Connor said they were discriminated against as farmers get reliefs on professional subscriptions.