The director-general designate of IBEC has ruled out any renegotiation of the national pay agreement during the upcoming review meeting of the social partners.
Mr Turlough O'Sullivan, whose appointment to the helm of the employers' group was announced yesterday, insisted that there is absolutely no provision to look at pay.
"It is only a review of progress on implementation and there is no provision to renegotiate. The unions understand that and that is why they will look at other options like indirect taxation."
The State's largest union, SIPTU, has said it wants higher wages or increased tax credits included in the upcoming review, scheduled for July 27th. The Irish Congress of Trade Unions is expected to endorse this when it meets next Wednesday, a day after inflation is expected to have reached 5.5 per cent or above.
Mr O'Sullivan said IBEC had gone very close to the limit of what was acceptable in terms of pay. "We would still be saying it is a very expensive deal," he added.
"We are only two months into what is a two-and-three-quarter year deal and inflation will fall back at the end of this year and into next."
Earlier this week, Mr Des Geraghty, SIPTU president, said the Government had made only feeble efforts to control inflation and IBEC had failed to confront members who exacerbated the problem by profiteering.
However, Mr O'Sullivan rejected this. "We have to wait and see what impact the Government's anti-inflation package will have," he said. "It will hasten the decline in the numbers which most commentators are predicting."
He added that the implementation of a consumer awareness programme was critical. "Many consumers are completely unaware of the benefits they would gain by shopping around for petrol or drink." He admitted that there has been some "opportunism in the marketplace" and warned that unless all involved pull together we could head back to "bad old days".
Mr O'Sullivan also stressed that over the course of the PPF almost £1.5 billion (€1.9 billion) will be given back to the PAYE sector and another £1.5 billion to the community and voluntary sector. "Overall people will be better off by 25 per cent," he insisted.
The upcoming review is likely to be followed by the initial negotiations on the Budget. Mr O'Sullivan said the unions and IBEC will undoubtedly be targeting different areas. "But there is enough goodwill and common sense to keep the show on the road." Mr O'Sullivan will take up the post from September 1st.
