Trade union and employer representatives met yesterday for an opening round of talks on a new national pay deal for the private sector.
The meeting at Government Buildings lasted for nearly three hours, but largely involved both sides setting out their positions in advance of detailed negotiations.
Further talks, involving unions in both the public and private sectors, as well as the Government and employers' organisations, will take place tomorrow.
It is anticipated that a structure for continued talks will begin to emerge at that meeting, with a view to beginning intensive negotiations next week.
The talks are aimed at agreeing pay rises for the second 18 months of the three-year Sustaining Progress partnership programme.
Current arrangements in some areas of the private sector expire at the end of June, so there is pressure on the parties to agree a deal before then.
If they fail to find agreement, unions in the relevant areas are likely to begin lodging pay claims early next month.
Workers received a 7 per cent pay increase, in three phases, over the first 18 months of Sustaining Progress.
The employers' body, IBEC, says a similar increase would not be sustainable on this occasion, given that inflation has dropped to 1.4 per cent.
Unions, however, are pressing for increases that take account of both inflation and projected economic growth.
They have not specified what increase is being sought but it is clear that they will demand pay rises substantially in excess of inflation.
Entering the talks yesterday, IBEC director general Mr Turlough O'Sullivan said pay increases in Ireland had risen three times faster in the years 2000 to 2003 than in the rest of the EU.
However, the Irish Congress of Trade Unions general secretary, Mr David Begg, said the recovery in the economy had allowed for a fair pay award to be made.
