Union sources are "cautiously optimistic" that agreement will be reached with the government this weekend on the temporary introduction of up to three weeks compulsory paid leave for all public servants in 2010.


Though the talks at government buildings were still "on a knife edge yesterday", the senior union source said problems which em­erged late on Friday evening had been resolved.


By yesterday afternoon, the parties were engaged in intensive efforts to get a deal over the line.


Weekend talks were centring on how the compulsory unpaid leave of 10 to 14 days would be applied across the different grades without unduly affecting service. Protection of the lower paid was also on the agenda.


Fourteen days unpaid leave equates to a 6% pay cut and would give finance minister Brian Lenihan the bulk of the €1.3bn savings he requires. However, it is understood the unions are insisting the leave be tapered so as to have a minimal effect on lower paid public servants such as clerical officers, members of the CPSU who are paid around €30,000.


Problems have also emerged about implementing the unpaid leave among groups such as secondary school teachers who already have almost three months off in the summer.


The introduction of an extended core working day of 8am to 8pm to reduce payments for unsocial hours to frontline public servants is also on the agenda.


Government officials have told the unions they are prepared to accept temporary cost-saving measures for 2010 which leaves basic pay alone as long as the savings total €1.3 bn.


But they have also told the unions they will have to agree radical reforms which will secure the same level of savings from 2011 onwards or else the temporary measures will remain.


Even if agreement is reached the unions will still have the problem of trying to get what will remain fairly unpalatable medicine past the members before budget day.


The unions will be able to show the members, whose appetite for more action is starting to wane, that they have achieved the initial aim of securing basic pay rates, pensions and jobs.