The Taoiseach, Bertie Ahern, has said that expectations for the pay talks which are about to get under way will have to be 'realistic'.
Arriving at Dublin Castle for a meeting of the Social Partners, Mr Ahern said Ireland would have to maintain and improve competitiveness or the economy would be 'in trouble'.
SIPTU General President Jack O'Connor warned that his union would not even enter the new round of talks unless issues of worker protection and agency workers were addressed.
The Taoiseach said two new pieces of legislation in this area would be published in the coming month, and he hoped this would reassure people.
Turlough O'Sullivan, of employers' organisation IBEC, said a new pay deal would have to take account of the difficult economic situation facing many companies.
