A union representing bank workers has called for the national partnership agreement, Towards 2016, to be immediately suspended and renegotiated.
Irish Bank Officials' Association (IBOA) general secretary Larry Broderick told the union's biennial delegate conference in Dublin that inflation and rising interest rates made a "mockery" of the deal.
" IBOA members rejected the terms of Towards 2016on the basis that it would not compensate members for inflation and the lack of a local bargaining clause," Mr Broderick said, according to a transcript of his speech.
Larry Broderick, IBOA
"With inflation running at 5.1 per cent, and interest rates forecast to rise even further, workers' wages are declining in value. and staff pensions are under attack, all of which makes a mockery of the national agreement.
"It is particularly galling for IBOA members working in the most profitable sector of the economy, where they see that banks can make massive profits and offer only minimal increases to staff despite increased productivity and profitability."
Speaking on RTÉ's Morning Ireland, Mr Broderick said Ictu had told its members the pay deal was "a great agreement" that would not only compensate for inflation, but would result in "real net benefits".
"All the indications are that inflation this year is going to be in excess of 5 per cent. That's less than the terms. We genuinely believe that we can't wait. We are only fooling ourselves and misleading our members," Mr Broderick said.
Asked about the Minister for Finance's view that the rise in inflation was a "spike" and that it would pass by the middle of the year, the IBOA chief said the union had "no confidence whatsoever" that this view was correct.
In his speech to the conference, Mr Broderick noted that the four main banks report profits in excess of €6 billion, most of which he said goes to international corporate investors.
The IBOA chief said staff were seeing "record profits based on increased productivity and cost cutting, million euro salaries for senior executives and directors, yet their own wages are eroded by inflation".
Members of the union were "appalled" at the restrictive nature of national wage agreements, he said.
Mr Broderick said he would be proposing to the Ictu executive the immediate suspension and renegotiation of the partnership agreement.
Today's conference will also debate a number of motions on security in the banking sector, including the recent increase in so-called tiger kidnappings.
Mr Broderick said there had been an "inordinate increase" in kidnappings and that "a number" that had not been reported.
The conference will debate a motion calling for an increase in security measures by September 1st. If the motion is passed and such measures are not put in place by that date, the union intends to instruct its members that they should no longer act as keyholders for banks.