Employers' group IBEC has called on the Government to shed up to 20% of public sector jobs because of the current economic crisis.
Director general Turlough O'Sullivan said it would be 'wrong and unsustainable' if there were no job losses in the public sector at a time when the private sector had lost over 100,000 jobs in the last 12 months.
Mr O'Sullivan was speaking before meeting the Taoiseach for a briefing on the economic crisis.
Mr O'Sullivan said the group set up to look at cutting public spending - known as An Bord Snip Nua - must start cutting staff numbers and other costs urgently.
He said people would not continue to pay the same level of taxes to fund Government spending based on a totally different economic reality. Mr O'Sullivan added that many employees would be prepared to take pay cuts rather that lose jobs.
He said Government must foster competitive enterprises to keep people employed by tackling the currency crisis, the credit crunch, and incentives for research and development.
