Senior trade unionists yesterday accused the Economic and Social Research Institute (ESRI) of disseminating misleading evidence on public sector pay levels. Public sector union Impact said ESRI claims that public servants were better paid than workers in the private sector relied on flawed data.

In its Quarterly Economic Commentary this week, ESRI economist Dr Alan Barrett said public sector earnings exceeded those in the private sector by 13-20 per cent. But Impact spokesman Bernard Harbor said this reflected important characteristics of public sector workers.

"On average, public servants are older than private sector workers. Two-thirds were over 35, compared with about a half of private sector workers," Mr Harbor said.

He also cited stronger trade union representation in the public sector as a cause of better pay conditions.

Siptu president Jack O'Connor defended conditions in the public sector. "Any comparative assessment must have regard to comparable skills, qualifications and responsibilities. The only effective way of determining this is through proper and thorough research by a fully staffed and resourced body such as the Benchmarking Body."

However the the Irish Bank Officials Association (IBOA) strongly defended the ESRI. General secretary Larry Broderick, said yesterday the ESRI report vindicated his organisation's aim of seeking a 10 per cent pay increase for bank employees

"The ESRI in its timely review has highlighted what those of us working in the private sector have known for a long time - that the pay of staff in the private sector has fallen way behind that of the public sector. It is ludicrous that workers responsible for the wealth-creating sector of our economy are penalised because of Government sponsored national agreements."

A second benchmarking body was established last month by Minister for Finance Brian Cowen and is due to report to Government in the second half of 2007.