Employers' group IBEC says a new survey shows that just over a fifth of employers have implemented pay cuts this year.
The survey, which covered just over 500 companies, found that 56% of firms had reduced their pay bill over the past year, by an average of 21%. 59% of companies have frozen pay levels, while 55% have cut staff numbers.
Asked about their most likely courses of action over the next three months, almost 60% of companies said they planned a recruitment freeze, while 45% planned to re-train existing staff.
28% of companies expect to cut their numbers of permanent staff, while a further 42% are considering such reductions.
22% of firms expect to implement short-time working, while 31% intend to scrap bonus payments.
IBEC director Brendan McGinty said there was no sign of any national agreement which would address problems of cost and competitiveness. 'Proposals published in June for the suspension of the private sector pay terms of the national agreement need to be formalised by IBEC and ICTU, he said.
