Employers' federation Ibec said today any wage increase agreed in the new round of partnership talks must be in line with Ireland's key trading partners and below the rate of inflation.
Ibec director general Turlough O'Sullivan
Ibec director general Turlough O'Sullivan warned today that large pay rises would add to the heavy burden already being felt by Irish businesses due to increased competition.
"These talks will only be useful if all involved accept the simple truth that Ireland must trade successfully," he said. "Over the past two decades, the stakeholders in Irish society have come together through national partnership discussions to build the prosperity we now enjoy.
"The starting point now, as before, has to be acceptance of the reality we face. Grandstanding with wish lists is just a distraction."
Ibec said it would be pushing a range of issues in the talks, including making competitiveness and productivity key national objectives.
They will also insist that any pay increases are in line with Ireland's trading partners, that high energy and local authority charges are addressed and that measures are introduced to sustain and develop the manufacturing sector.
Mr O'Sullivan said Ireland must have have a flexible labour market and a low rate of inflation to remain competitive.
"Our ability to compete in international markets is the measure of all things in these discussions. Selling successfully overseas is a prerequisite to any social benefits we may seek," Mr O'Sullivan said.
"It is a matter of grasping the reality that without income from exports, Ireland will not be able to afford the things we take for granted."
Minister for Enterprise Micheál Martin predicted this morning the talks process would be challenging and difficult.
"Competitiveness has to be top of the agenda and that affects everybody in terms of workers and employers alike and we're all in this together," he said.
"I would hope that we would have a deal," he told RTü/span>? Radio. "We're up for an agreement that actually copper-fastens and protects workers' rights and conditions."
