The Tánaiste says the prospect of bonuses for Irish Water staff will give them an incentive to work harder.

Joan Burton was reacting to a deal at the Labour Relations Commission which will see workers paid annual increases of between 1.5 and 3% as part of an interim arrangement until 2017.

The government had taken the issue to the LRC after refusing to pay controversial bonuses for 2013 and 2014.

That model will now return from 2017 onwards, but the Tánaiste says she's happy with the outcome:

The Junior Minister for Mental Health Kathleen Lynch has also given her reaction.