IMPACT have told their members that the govt. has three options.
1 Give up on the savings and leave things as they are until the existing Croke Park agreement expires next March;
2 Seek to clarify, or even amend, the rejected proposals — perhaps with the assistance of an external facilitator such as the Labour Relations Commission;
3 Move to impose the cuts — or a worse package — without agreement
In my view the first option is highly unlikely because the govt. needs the savings now. I also think the second is unlikely because I don't think they can amend CPII in such a way to appease enough unions to back the deal.
The third view is more likely. I don't think they'd have the bottle to impose a worse package, unless they're really looking for a showdown, but they might try to legislate for the main parts of the rejected deal and hope the union anger blows over, perhaps with some concession thrown in to try and placate some unions.
Are there any other options open to them? A mini-budget to raise tax, cuts to services, amend their timetable with the Troika, etc.
Please try and keep this discussion on what the govt. might do now and not the rights or wrongs of the PS or the deal