Flynn, the former ICTU president, resigned last year as head of the government's key decentralisation implementation group and as chairman of Bank of Scotland after he was questioned by gardai during their investigation of alleged money laundering by the republican movement.

He claimed that he was innocent and had been effectively duped by business partners, but had resigned so as not to further embarrass Taoiseach Bertie Ahern, who had appointed him to several state bodies.

While it was felt that Flynn's star had fallen irretrievably in government circles, the trade unions are now saying that they want to re-nominate Flynn and former Siptu leader, Billy Attley, to the second benchmarking body which is already almost six months behind schedule.

Flynn and Attley were on the last benchmarking body which recommended pay increases for public servants in 2002 totalling over 1 billion.

While the seven-person benchmarking body is officially appointed by government, employers and unions have two nominations each while the government appoints two independents and the chair.

Though the government can veto nominations, next week the unions are expected to agree to re-nominate Flynn and Attley. But while Attley will accept the union nomination, Flynn has yet to indicate whether he wants to take up what will be a considerable amount of work over the next 18 months. He is 65 and has extensive business interests.

Meanwhile, the government has finally given up on trying to convince a judge to head up the body. Justice Quirke chaired the last benchmarking committee but is not available this time.

Given the number of tribunals headed up by judges and the backlog in the courts, the courts service argued that a judge could not be spared.

Instead, arrangements are being finalised to appoint a senior counsel to the job.

Other nominations include independent government nominee Olive Braiden, the chairwoman of the Crisis Pregnancy Agency, and employer representatives John Malone, former secretary-general of the Department of Agriculture, and Willie Slattery, director of the US financial group, State Street.