Only four companies, employing 1,535 people, have told SIPTU they will not pay the 2 per cent cost-of-living increase due next week, according to the union's general secretary. Mr John McDonnell was rebutting claims by the Irish Business and Employers' Confederation that there was a groundswell of opposition to the payments, agreed under a review of the Programme for Prosperity and Fairness last December.
He took the opportunity to remind employers they could not withdraw unilaterally from an agreement which involves all the social partners, including the Government.
A Government spokesman described the controversy as part of "an unnecessary debate, as all the issues were anticipated and their resolution provided for in the agreement".
On Monday, IBEC's director of human resources, Mr Brendan McGinty, claimed there was a groundswell of opposition to the increase from his members, including those who had paid more than the basic terms of the PPF and "would argue they shouldn't be hit on the double".
Competitive challenges were increasing and companies wanted to be sure of "full and ongoing productivity" for the money. "We see a number of cases where companies are either unable to pay or where they need some reasonable quid pro quo to meet the extra costs."
He said any disputed cases should be referred through the procedures, and the PPF's industrial peace clause honoured in the meantime.
According to SIPTU, the four companies refusing to pay are among seven firms which have already invoked clause seven of the PPF - inability to pay - to deny employees pay rises in line with the national agreement. "The pattern quite clearly shows the vast majority of employers appear ready to honour their commitments," Mr McDonnell said.
While the union has received assurances from companies employing almost 100,000 of its members that the 2 per cent would be paid, this means there are another 100,000 members where the situation may not be clarified until next month. If a substantial proportion find employers reneging on the review, the agreement will be in difficulty.
Another major private sector union is MSF, which has 10,000 members in financial services and 5,000 spread across pharmaceuticals, engineering, the new technology and manufacturing sectors. Its deputy national officer, Mr Jerry Shanahan, says no company has sought a deferment of the increase. He described the IBEC stance as "a bit disingenuous".
However, Mandate's research officer, Mr Brendan Archbold, says vintners and retailers are resisting on the grounds that increases worth between 18 per cent and 27 per cent have already been agreed. They felt workers were already more than compensated for inflation.
The biggest problem of all is with the Construction Industry Federation, which has conceded pay rises worth almost 44 per cent under the PPF. The unions are expected to refer the dispute to the Labour Court.