The talks at Government buildings were supposed to be finalised before last December but have become bogged down over efforts to combat the displacement of Irish workers with cheaper non-national workers.

Jack O'Connor of Siptu insisted there will have to be a resolution to the displacement issue before it can even start negotiations on pay. But other unions are becoming impatient.

"The Iboa is frustrated at the lack of progress on the talks on a new national agreement and in particular at the failure to begin addressing the most important issue i. e.

pay" said Larry Broderick of the bankers union.

"Workers throughout the country are experiencing the highest inflation rates in years, rising interest repayments on their mortgages, higher medical and childcare costs and rightly want their unions to begin negotiations on pay, " warned Broderick.

The Iboa has already said a minimum requirement from any pay deal is a 10% increase over two years . . . almost twice the increase the employers are likely to concede.

Other unions, such as Mandate, have also quit the partnership to pursue pay increase on their own.

But Mark Fielding of Isme said unions' promotion of displacement, for which there is no hard evidence, is a "dangerous exercise which will lead to xenophobia".

"By attempting to play the race card, a cynical and dangerous exercise in its own right, the unions are using sensationalist and shock tactics to bolster its own membership" warned Fielding.

Sources close to the talks said the normally good relations between the unions and Taoiseach Bertie Ahern have deteriorated and a resolution is not expected until after Easter at the earliest.