The Irish Small and Medium Enterprise (Isme) lobby group today called for a complete review of the benchmarking process following a report the group commissioned from economist Jim Power.
According to the group, benchmarking has failed to deliver and the additional costs far outweigh the limited benefits.
The group says public sector wages are 41 per cent ahead of the private sector equivalent while the 26,000 new jobs, excluding health, in the public sector in the past four years confirms no problem exists with retaining and recruiting new staff.
Isme said the second benchmarking process "must be transparent, must insist on proper performance measurement and must recognise the realities of the globalised world in which the very small and very open Irish economy now operates".
The report recommends the benchmarking body take on board factors such as the changing nature of the Irish economy and the challenges facing it, a serious assessment of the terms and conditions of employment in the private sector compared to the public sector, the financial cost of the public sector, and the broad implications that another deal would have on the private sector.
"In many ways a parallel universe has been allowed develop in the Irish economy in recent years, on one side cosseted public sector employees and on the other a private sector labour force that is facing increasing uncertainty in relation to job security and future pension benefits," a statement from Isme said.