Unions and employers were today urged to return to the negotiating table as Scotland faced the prospect of more council pay strikes.
The appeal was issued by finance secretary John Swinney who also said councils could expect no extra money from the Scottish Government.
But Mr Swinney came under fire from Liberal Democrats who urged the Scottish Government to intervene in the wrangle.
Mr Swinney's appeal came after three local authority trade unions yesterday failed to secure a higher pay offer.
This has pave the way for a fresh wave of strike of the type which saw 150,000 council workers stage a one-day walkout last month, throwing public services into chaos.
Mr Swinney told BBC Radio Scotland's Good Morning Scotland today: "I would encourage both parties, as I have done personally and publicly, to come to an agreement round the table and to resolve the issues at stake."
Unions have accused the employers of a "total misjudgment" but the Convention of Scottish Local Authorities said this year's pay offer could not be increased.
Last month's walkout was triggered by a pay offer of 2.5% for each of the next three years.
Unions said the employers then "indicated" they would offer a one-year deal that would take recent inflation rises into account, but only came up with a one-year offer of 2.5%.
The three unions - Unison, Unite and the GMB - are to meet within days to discuss strike dates.
Mr Swinney said: "I would encourage a discussion around the table to try and resolve these issues.
"We all want to avoid a situation where there is any disruption to members of the public as a consequence of industrial action that may follow."
But he gave no indication that any extra cash would be forthcoming to finance a better pay offer.
"We have allocated the money that we've got available," he said.
"I have no reserve resources available that I can allocate to any particular circumstance.
"What I have got to find is resources within the existing allocations made by the Scottish Government to meet any challenges or priorities that we face.
"So the allocation has been made, and I encourage both parties to try to resolve the issue within that allocation."
But Scottish Liberal Democrat leader Tavish Scott said: "How serious does the situation need to get before ministers recognise that pay policy is their responsibility?
"Ministers must sort this out by getting around the negotiating table immediately.
"Public sector strikes have a direct impact on the services that everyone relies on.
"At a time when people across the country are already feeling hard pressed, having to cope with extra pressures couldn't come at a worse time."
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