Talks on a new national pay agreement have been adjourned for today. They will resume tomorrow.
Unions are demanding generous pay settlements from employers.
The Irish Congress of Trade Unions said Irish business had never had it so good, and that workers must be compensated for rising inflation.
ICTU economist Paul Sweeney said many firms enjoy double digit profit levels and pay lower tax and social welfare contributions than their European counterparts.
He said workers feeling the pinch from rising inflation must be compensated as must those whose wages have been eroded by a failure to enforce good employment standards.
However, employers stress that Ireland's competitiveness is already being hit by rising oil prices outside their control, and by what they say are the highest absolute wage rates in Europe.
Employers' lobby group IBEC said wage increases must be kept in the low single figures because of falling competitiveness in industry.
IBEC categorically rules out any local bargaining clause.
The Minister for Finance, Brian Cowen, has called on employers and unions to co-operate in seeking a new pay agreement.
He said it was up to everyone to work together to reach a deal in the best interest of the country.
He said employers and unions could not just look to the Government to broker a pay deal.
He refused to be drawn on whether the Government could bring tax cuts to the table to try to broker a pay deal.
None of the participants would predict how long these talks might take.
