The €302 million a year deal would increase pay for state employees by 2%
But the union's executive says it locks in "pay discrimination" for those hired since the last agreement in 2011.
Martin Marjoram, president of the TUI, says new entrants will be paid €8,500 starting off - and that's a red-line issue for his members.
"Unfortunately, while there are positives in the proposals. It leaves in place the pay discrimination, which has been the biggest issue facing our union over the last 10 years and one which our members have repeatedly told us that they want to have solved. The agreement claims that these proposals solve the problem and they just don't. So we're simply not in a position to do anything other than recommend rejection."