Trade union calls for a "generous" wage settlement were rebuffed by employers yesterday at the outset of talks on a new national pay deal.
Negotiators for both sides returned to Government Buildings for the talks having reached an outline agreement last week on measures to underpin employment standards. It is hoped that a deal on pay, to form part of an overall social partnership programme, can be achieved within two to three weeks.
There was sharp disagreement on the issue, however, between the Irish Congress of Trade Unions (Ictu) and the Irish Business and Employers' Confederation (Ibec).
Ictu economic adviser Paul Sweeney said in advance of the talks that employers had never had it so good, and could therefore afford a generous wage settlement.
Ibec director of industrial relations Brendan McGinty said yesterday that his organisation rejected Mr Sweeney's analysis.
It had not taken account of the fact that large tracts of Irish business, not least the manufacturing sector which had been the driver of the Celtic Tiger economy, were under "intolerable strain".
Mr McGinty said Ireland had fallen from fourth to 26th in the World Economic Forum competitiveness league since 2001, while businesses were being hit with rising wage and non-wage costs.
Restoring competitiveness had to be a priority given that Ireland was a small, open economy that exported 95 per cent of what it produced, he said.
Entering the talks, however, Ictu general secretary David Begg said he felt sorry for employers given that they had the "worst possible case" to support their claims. The OECD, he said, had been unable to find words strong enough to praise Ireland's economic performance.
While neither side has yet discussed what level of pay rise they will propose in the talks, Ibec director general Turlough O'Sullivan said any increase would have to be in "low single figures".
Minister for Finance Brian Cowen said he hoped the parties would co-operate and agree a deal "in the overall interests of the country".
With the pay talks finally under way, negotiations are also set to intensify on the wider social agenda which, the parties hope, will form the basis of a 10-year partnership agreement.
Cori justice commission direc- tor Fr Seán Healy said while pay was a "central issue" in any partnership programme, it was important to remember it was not the only issue. He said there were four key areas that needed to be addressed in a new agreement. These were: infrastructure deficits, particularly in social housing and transport; service provision in areas such as healthcare, education and social care; income adequacy; and maximising participation in society.
