Disruption to the postal service caused by a dispute at An Post could have "catastrophic consequences" for business it was claimed today.
Irish Small and Medium Enterprises Association (ISME) chief executive, Mr Mark Fielding said a failure in the mail delivery system would have serious consequences for cash flow at smaller companies.
"The cancellation of postal services is the last thing small business needs, after the disruption caused by last week's on off threatened transport strike.
With many firms experiencing cash flow difficulties, any further delays in payments will have a negative impact on companies, who are attempting to rebound from a difficult trading environment over the last few years," Mr Fielding said.
He said an all out strike would have "catastrophic consequences for the economy as a whole and for small businesses in particular".
Tension at An Post has been simmering for a number of years as the company attempts to restructure in the face of massive operating losses. It erupted early Saturday morning when over 60 workers were suspended for refusing to carry out what management says is normal working practices.
An Post says the workers refused to continue with work they have been doing for over a year. But the Communication Workers Union have accused the company of spreading misinformation and says new practices were imposed without agreement.
The union's national organiser, Mr Seán McDonagh told RTE radio that the company was deliberately obstructing talks aimed at arriving at a mutually acceptable restructuring plan.
"They have been developing a crisis and have been planning it for some time," Mr McDonagh said.
Over 260 people at depots in Dublin have been suspended in the past 48 hours and An Post has asked the public not to post mail until further notice. The parcel service is not affected.