The largest trade union in the country has accused the employers' federation, IBEC, of deciding to abandon social partnership. The current national wage deal, the PPF, expires at the end of the year. Talks on a new agreement are due to start in the autumn.
SIPTU Vice President Jack O'Connor said he believed IBEC was reconsidering a national agreement because the employers had realised that social partnership entailed responsibilities on the part of employers which they did not intend to honour.
Mr O'Connor rejected the employers' argument that Irish workers were now significantly better off. He said that SIPTU had no fears about engaging with employers in whatever bargaining arena would emerge.
Earlier today, IBEC's Director-General said employers were questioning the value of another national wage agreement. Turlough O'Sullivan said that this was because unions had pursued unsustainable wage increases over and above what was provided for in P2000 and the PPF.