Wage talks between the Ministry of Finance and the Police Federation collapsed Wednesday afternoon.
The parties were unable to reach an agreement during negotiations at the Ministry of Finance.
It is understood that the Finance Ministry will now refer the matter to the Ministry of Labour for concilliation.
The Federation has rejected the government's wage increase offer of 16 per cent over four years.
The Federation has also rejected the government's decision to pay the police this month despite no agreement being in place.
Police Federation Chairman Sergeant Cecil McCalla has said if the Finance Ministry goes ahead and pays the police it would be a serious breach of trust and good faith.
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