The Civil and Public Service Union has called for a wider public debate on the implications of the euro entry rate for the pound.
According to the CPSU, which represents civil service clerical grades, the effect on workers' incomes must be carefully considered despite the fact that farmers and exporters support a devaluation to the central rate of DM2.41.
Its general secretary, Mr Blair Horan, issued a statement yesterday as Irish Congress of Trade Union leaders prepare to meet the Government to discuss concerns over the impact of EMU. Mr Horan said a 5 per cent devaluation to enter the euro could have implications for inflation and would reduce workers' incomes and purchasing power.
The CPSU warned that the possible competitive advantage for the economy by devaluing could be undermined by higher inflation. This had the potential to undermine social partnership. A devaluation would also mean fewer euros in workers' pockets.
It calculates that average industrial earnings of £15,000 a year at today's exchange rate would roughly translate into 19,250 euros but would fall to 18,340
euros if the pound entered at the central rate. This would also affect the pension assets and savings in the new currency.
"Less euros in workers' pockets could only be justified if there is confidence that there will be a clear competitive advantage to the economy which will not result in inflation and will quickly restore the real value of workers' incomes across the EU."
Mr Horan said the implications for workers' incomes and purchasing power must be given equal weight by the Minister for Finance with competitive issues.