Union leaders have announced plans for a coordinated campaign on public sector pay which may include ballots for industrial action.

In a letter to members of the Irish Congress of Trade Union's Public Services Committee, lead negotiators said they had now concluded that the Government was breaching the current public service pay agreement, 'Building Momentum’, by failing to conclude a review of the deal.

"We recommend that unions begin practical arrangements for balloting, to begin next month, pending a meeting of the Public Services Committee to coordinate the campaign," the letter states.

Union leaders also said they were no longer prepared to discuss an extension of the Building Momentum agreement, to cover pay in 2023, until improved terms for 2021-2022 are agreed.

The review clause of the current pay deal was triggered over four months ago.

Public sector pay talks were held at the Workplace Relations Commission in June but ended without agreement.

The Government had offered a 2.5% pay increase this year and a further 2.5% next year but unions rejected the deal saying it 'fell far short' of inflation.

The Government has pointed out however that the 5% pay rise offered to unions comes on top of a 2% increase already provided for in the existing public sector pay deal.

This afternoon, a spokesperson from the Department of Public Expenditure and Reform said the Government wants to reach an "appropriate agreement" with public service unions.

It said this agreement should "strike the correct balance between providing for both continued investment in our public services and an approach to public service pay that is both fair and affordable, taking account of cost of living pressures but also the wider economic environment."

The spokesperson said they will continue to "engage constructively" with the assistance of the WRC to establish how this objective can be met.

"We are available to enter into further discussions with the public service unions under the auspices WRC and contact is continuing in that regard," they added.

Unions say they are frustrated over delays in restarting the negotiations and over mixed messages coming from the Government.

"The Government administration is now effectively winding down until mid-September, leaving low and middle-income public servants with the prospect of another two months of uncertainty," the ICTU letter states.

"In our view, the Government’s attitude towards its staff is bordering on contempt."

"Given its continued foot-dragging, it seems clear that the Government does not intend to conclude the review of Building Momentum."

Union leaders said that if there is no extension in place before the current agreement expires at the end of December, they will have to submit pay claims for next year.

"We are recommending a coordinated union campaign, supported by industrial action ballots, to achieve a credible pay offer for 2021-2022 for public servants who, in common with workers across the economy, are bearing the full brunt of large and sustained increases in the cost of home heating, fuel, food, housing, childcare, and many other essentials," the letter stated.