Unions, employers and the Government began negotiations today in an attempt to secure a new national pay deal.
The talks get underway with a formal session at Government Buildings this afternoon, following initial talks between union representatives and separate meetings between employers' groups.
A final decision is not expected for at least three weeks. The parties hope a new National Wage Agreement will be sealed before the opening of the Impact biennial conference in Co Kerry on May 24th. Impact is the State's largest public sector union.
The Irish Congress of Trade Unions yesterday claimed conditions for a "generous" wage settlement were never better, particularly in light of Irish business enjoying record profit levels.
However, the employers' body, Ibec, is likely to oppose any such increase, saying the main focus must be on restoring lost competitiveness.
Taoiseach Bertie Ahern voiced his support for employers in their demand that any pay agreement would only last for three years. "To be going through this process in any shorter period of time would be just unnecessarily painful for everybody involved," he said.
Union leaders have expressed a preference for a shorter pay deal of perhaps two years', or even just a year's duration.
Linked to this is the question of whether any new deal should include a local bargaining element, which is a priority objective of private-sector unions.
They argue that it is wrong that employees in hugely profitable sectors such as banking must accept modest pay increases tailored to suit the needs of hard-pressed manufacturing companies.
But Ibec is strongly opposed to such a provision, insisting that unions can have local bargaining or a national agreement, but not both.
The decision to open pay talks today followed a breakthrough last week in negotiations on measures to underpin employment standards. It was agreed that new legislation would be brought in to deter employers from replacing Irish staff with cheap overseas labour. The number of labour inspectors will also be increased to 90.