The small business lobby group ISME says that small businesses are conceding pay rises of up to 4% because of the delay in agreeing a new national wage agreement.
ISME Chief Executive Mark Fielding said the failure to reach a national deal on pay had led to uncertainty for employers - and many have to implement pay rises to retain staff in a tight labour market.
Meanwhile, the General Secretary of the Irish Congress of Trade Unions, David Begg, warned that rising inflation and fuel prices would force unions to seek higher wage rises in pay negotiations.
Irish Ferries, Gama and a number of other controversies involving low pay and poor working conditions have placed exploitation of workers at the top of the social partnership agenda.
For almost three months, employers and unions have been engaged in negotiations trying to agree new mechanisms to enforce and maintain employment standards.
While some progress has been made, so far no deal has been concluded.
ICTU's executive council met today to be briefed on progress so far at the talks.
