This will be the main part of a new partnership agreement to replace the Sustaining Progress deal, due to run out for most employees tomorrow.

Informed sources have ruled out a speedy deal despite the pay talks being six months behind schedule. The next target date for completion is early June so that teachers can vote on the deal before starting their summer holidays.

The delay in getting a deal was caused by the bitter Irish Ferries' dispute. Last October Siptu president Jack O'Connor refused to enter pay talks until Irish workers were given guarantees that they could not be easily displaced by cheaper foreign workers.

These lengthy talks concluded late last Wednesday night with an outline agreement which provides for a beefed-up labour inspectorate, an increase in fines from the current 3,000 to 250,000 for employers who break the labour laws and compensation for Irish workers if they are replaced with cheaper workers.

But the delay has not played into the hands of the employers because since last December . . . when the pay deal should have been completed . . . surging oil prices have pushed inflation to over 3%.

Ictu's David Begg has already said the minimum union demand will be a pay increase to cover inflation plus a share of the wealth created in the country.

Employers will insist that any increase is set below inflation in order to maintain competitiveness.