SIPTU has called on the Government to exempt all workers earning below the average industrial wage of around €38,000 from the new 1% income levy.
This is a higher exemption threshold that that sought by congress, which yesterday called for workers earning below €11 per hour or €23,000 to be exempt.
Speaking at a SIPTU conference in Dublin, General Secretary Joe O'Flynn said that the levy would seriously undermine the proposed national wage agremeent - and the prospect of members voting for it.
SIPTU has deferred balloting on the national wage agreement for a week pending clarification from Taoiseach Brian Cowen.
Mr O'Flynn also voiced concern about the impact of the financial crisis on pension schemes.
He called for a State annuity scheme to be operated by the National Pensions Reserve Fund.
Mr O'Flynn said that at present there are only two main providers of annuity cover in Ireland.
He claimed that they enjoy premiums of 20% to 30% above the actual cost of providing a pension.
He said such a scheme would allow administrative costs to be reduced and alleviate pressure on pension schemes.
