There is now scope for substantial basic pay increases well above the rate of inflation in any new national agreement, SIPTU's vice-president, Mr Des Geraghty, has told delegates to the union's biennial conference.
He said that such pay rises were justified by increases in Ireland's growth rate and productivity.
He rounded on opponents of talks within the union and asked them if they really believed they could achieve more by taking members "outside the door" with strike action. Such tactics would not make trade unions attractive to a younger generation.
He described SIPTU as not just a trade union but "a people's movement, a movement of workers' collective intelligence with a pivotal role to play in Ireland . . . We want to apply that intelligence to a programme of radical reform and social advance."
Contrary to what critics said, the union leadership was not looking for "a blank cheque" to enter talks, but "to build a successful social economy, not a selfish, rip-off, greedy, dog-eat-dog society".
He said that pay rates had increased by 32 per cent, or more than twice the EU average and four times the US rate. Nearly half a million more people were at work, and the national debt had been more than halved as a percentage of GNP. Financial institutions and indigenous businesses were enjoying increased profits. "We created the surplus, now we want a say in how it is distributed. I do not believe we should walk away from that task," Mr Geraghty said.
Priorities in any new talks were the need for flat-rate pay increases to help the lower-paid, local bargaining in stronger sectors, tax reforms that would take 80 per cent of PAYE earners off the top rate and a widening of tax bands that would put the majority of low-paid workers out of the tax net altogether.
Major initiatives to reform pension and social welfare were needed. There should be a national minimum wage rate of £5 per hour, he added. If the Government chose to stay with a rate below this SIPTU would give its full industrial support to any members seeking £5 an hour. He reminded members: "Many employers out there don't want partnership. They don't even belong to IBEC. They want to stay out there and pick off the weak."