Government and unions are trying to hammer out a timetable for talks on savings of €1 billion.

Congress has warned that compromise will be needed for both sides if there is to be an extension to the Croke Park Agreement.

The largest trade union has also said there will be no new deal on public sector pay and working hours if the government insists on compulsory redundancies.

Patricia King of SIPTU said it was a core trade union principle to protect jobs and there would be no deal if the proposal is pushed by the government.

"The issue of compulsory redundancy, from our perspective - from our own union's perspective - there will be no agreement with that in it" she said.

She made the remarks as unions and public sector management meet again today to discuss a framework for talks on a successor to the Croke Park Agreement.

Unions have expressed shock at the scale of the cuts being demanded by the government.

Nurses and midwives representative Liam Doran says management will need to start compromising fairly quickly or there will be no point in talks.