The Irish Congress of Trade Unions has described as 'bogus' the claim that pay cuts are necessary to restore lost competitiveness.
The comments came ahead of a May Day rally against austerity measures at Parnell Square in Dublin today.
ICTU says the cutbacks are shrinking the economy, increasing unemployment and forcing the best and the brightest to go abroad.
General Secretary David Begg says the Government's own forecast last week suggests that it is conceding that the economic outlook is deteriorating.
Representatives of trade unions, socialist groups and left wing political parties took part in the march.
Hundreds of people marched from Parnell Square to the James Connolly memorial opposite Liberty Hall.
The march was organised by the Dublin Council of Trade Unions.
