Around 500,000 workers are to receive pay increases of 5.5 per cent over 18 months under the terms of a new pay deal provisionally agreed today.
With the dispute over the future of Aer Rianta resolved for the meantime, the remaining stumbling blocks to agreement were overcome this afternoon at talks between the employers group IBEC and the Irish Congress of Trade Unions.
The second 18-month stage of Sustaining Progressdelivers pay increases of 1.5 per cent for the first six months, 1.5 per cent for the second six months and 2.5 per cent in the last six months.
The increase is likely to fall somewhere between the positions of the two parties: higher than the expected rate of inflation but below the anticipated rate of economic growth.
Unions failed to get a flat-rate increase for low-paid workers but those on €9 per hour or less will receive a 2 per cent increase in the first phase which represents €21 per week for someone working 40 hours.
IBEC's director of industrial relations, Mr Brendan McGinty, said the deal was a success for employers.
"The increases in terms of the pattern they're paid in, are now more akin to what has been agreed across our other trading partners," he said.
"It is substantially less than the trade unions were seeking and therefore represents an acceptable compromise," Mr McGinty added.
Issues relating to redundancy payments, partnership in the workplace and the implementation of forthcoming labour legislation need to be agreed before the deal can be confirmed. Mr McGinty said he expected agreement on those matters next week.
Other aspects of the deal include more resources for the Department of Enterprise Trade and Employment's labour inspectorate and a new minimum wage to be set by the Labour Court.
The next stage of Sustaining Progresskicks in for some public sector workers from July 1st, though for many others it takes effect from September and October.
Public sector workers must wait until June of next year to get the increase.