Unions had been pressing for pay rises in or around 7% to compensate for the spiralling cost of living.
Talks between Government and trade unions on a new public sector pay deal have broken up overnight without agreement.
Union sources say the discussions continued until around 3am this morning at the Workplace Relations Commission (WRC), but broke up as there was too significant a gap between both sides.
Unions had been pressing for pay rises in or around 7% to compensate for the spiralling cost of living.
The WRC has urged both sides to reflect and consider fresh negotiations.
Union leaders expressed their disappointment as they left the talks.
Business journalist Gavin McLoughlin says a no-deal scenario could lead to a period of instability:

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