The chairman of the Irish Small and Medium Enterprises Association (ISME) has called for the abolition of social partnership.
Eilis Quinlan said the current system needed to be replaced with a National Representation Forum, to include representatives of small business, which she said were currently ignored at all levels of decision making.
Ms Quinlan also called for pay and job cuts to be imposed in the public sector.
In a speech at ISME's annual conference in Dublin, Ms Quinlan told delegates that: 'The trade unions, in particular the public sector Unions, have been allowed ride rough shod over the economy through the so called Partnership process and in dealings with Government.'
She said this has led to a 'bloated' public service, 'a luxury the country can no longer afford.'
'With the Government needing to achieve a €4bn saving in 2010, there is no option but to reduce the cost of running the public service, contrary to the union threats.
'A balance must be struck between the advantages of a continuous and stable partnership, in terms of shared understanding and trust, and the disadvantages of the current rigid model in which certain interests have become entrenched.'
Elsewhere, Colm McCarthy, Chairman of An Bord Snip Nua, has said that ‘over the next month or two we are going to see a big test for the social partnership process’.
He said that in relation to cost-saving measures, said that ‘it is up to the Government to come up with a mix of measures which they think is fair’.
He added that this was a political decision.
‘We are into an austerity programme that is going to last for a few years,’ Mr McCarthy said, adding that public expenditure is unsustainable.
He said the Government has been ‘fairly resolute’ in its assertion that adjustments have to be made, as if it did nothing the deficit would rise, as the cost of servicing debt is ‘ramping up’ and the numbers claiming social welfare will rise.
The Government appears to be committed to cutting costs, he said.
Mr McCarthy was speaking ahead of addressing the ISME conference in Dublin.
