The country’s biggest trade union, SIPTU, say they are prepared to return to local bargaining if employers decide against entering into a new pay agreement at the end of the year.
IBEC today warned they may not be willing to enter into another pay agreement after the current Programme for Prosperity and Fairness (PPF) runs out.
A survey of IBEC members shows growing dissatisfaction with the PPF and the pressure it is putting on wages. Mr Brendan McGinty, IBEC Director of Industrial Relations and Human Resources said today that many members were unhappy about entering the PPF and that any new agreement would require a "radical course correction".
"IBEC members will only contemplate another agreement if low single figure pay terms in line with trends in other EU and competitor countries can be agreed, and they can be confident that new and truly effective compliance measures can be put in place," Mr McGinty said.
However, SIPTU cite a recent survey showing average wages in Ireland are among the lowest in the EU and claim the IBEC’s comments reveal their "wafer-thin" commitment to social partnership. However, they say they have no fears about negotiating in any "bargaining arena".
"Now that employers can no longer have wage increases subsidised by the scale of tax reductions that were hitherto possible, they are now threatening to walk away from social partnership," said SIPTU Vice President, Mr Jack O’Connor.
"Trade union members have no problem with competitiveness other than with the fact that IBEC and many employers restrict the concept to the sole objective of exercising downward pressure on wages," he addded.
IBEC also called for guarantees that the Government would keep a tight reign on public spending.
They say they will be consulting further with members before a decision is made in the summer on future strategy.