The Taoiseach says the coalition will get 300 million euro in savings from the public sector pay bill this year - despite rejection of Croke Park 2 by unions.
Enda Kenny has also backed the embattled Public Expenditure Minister telling the Dáil the government is absolutely united behind Brendan Howlin.
When asked by the Opposition for his 'Plan B' Enda Kenny maintained the government needed time to reflect on the ballot results.
But he warned that there was a need to make the proposed savings in the deal one way or another.
"The bottom line here is absolutely clear - we have to, we must and we will find 300 million of extra savings this year from payroll" he said.
"That's the challenge that govenrment now faces, and we'll obviously reflect on this" he added.