Full-scale national pay talks are to get under way on Monday with Taoiseach Brian Cowen saying he wants them concluded within a week.
Employers and unions met in Government Buildings this morning after a month's break from talks.
In a statement released after this morning's meeting, Mr Cowen said he had highlighted to both sides the "evolving economic situation and, in particular, the further developments in the Exchequer finances, since talks were concluded in early August.
“I think all sides are agreed on the need to avoid drift and uncertainty as to whether an agreement is possible”, Mr Cowen added. Both Ibec and Ictu said after this morning's meeting that Mr Cowen had asked that a conclusion be reached within a week of Monday's talks.
Employers' group Ibec said that everyone including its members will have to “share the pain” if a new wage agreement is to be reached.
Speaking on his way into Government Buildings, Ibec general secretary Turlough O'Sullivan said he was less than optimistic that an agreement could be reached.
However he said that he was hopeful that the social partners could come together in the national interest as they had done in the past.
Asked whether employers would be prepared to show leadership in connection with their own pay which has come in for criticism from unions, Mr O’Sullivan said: “Everyone had to share the pain, no exceptions.”
He said the pay of some senior executives had been decimated in some cases already because of companies’ performances and said that more of this would be seen as the year progressed. “If we are to get a national wage agreement, everyone involved including employers will have to show good leadership,” he said.
He added that whatever was signed up, “everyone should be prepared to partake in it”.
The general secretary of the Irish Congress of Trade Unions (Ictu) David Begg said that unions were going into the talks in good faith and to hear what the Taoiseach had to say.
He said that things had not really changed since the talks broke down in July but that unions would “do everything we can to ensure that if there is a positive outcome then we will move towards it”.
Mr Begg was sceptical about the prospects of senior business executives sharing in the pain. “I see squadrons of pigs flying by,” he said. He said that Ibec members had awarded themselves increases of 30 per cent last year and the prospect of them sharing the pain was “remote”.
Mr Begg said that while the exchequer figures were “very disappointing” there were “some positive signs on the horizon”.
He said the level of direct foreign investment had increased and oil prices had fallen.
He said that there had been a collapse in consumer confidence and people were “insecure and afraid to spend.” He concluded that “moderate pay increases were well and good but they could not go too far in that direction.”
Sinn Féin spokesman on workers’ rights Arthur Morgan acknowledged that businesses were noticing the "sharp economic turn" but he said the low-paid were bearing the "harshest brunt" of the economic challenges. Mr Morgan said employers and the Government needed to accept that increased cost of living expenses have to be addressed for the low paid and that non-pay issues such as collective bargaining also needed to be addressed.
Taoiseach, Brian Cowen has already said he would be seeking agreement on a significant pay pause from public sector employees
The European central Bank yesterday called for unions and governments in the EU to abolish the link between inflation and pay rises.
Pay deal talks broke down a month ago following union rejection of proposals for a 5 per cent increase over 21 months. This included a six-month pay freeze for many private sector workers, an 11-month pay pause for public sector staff, with the construction industry taking a 12-month pause.
