One of the largest trade unions in the country will start pressing pay claims in excess of the rate of inflation at its meeting this evening.
The Technical Engineering and Electrical Union's (TEEU) executive will meet to decide strategy for a pay campaign on behalf of its 35,000 members following the collapse of talks to find a successor to the Programme for Prosperity and Fairness (PPF).
And while the Government hopes the consequences of a pay free-for-all will drive unions and employers back to the table in the new year, inflation is expected to rise from 4.8 per cent to closer to 6 per cent over this period as a series of price rises kick-in. This make any pay deal still more unpalatable for employers.
This morning, a TEEU spokesman said the six-month pay pause enjoyed by semi-state companies such as ESB was likely to be replaced by claims for immediate increases which would come into effect from July 1st.
The TEEU assistant general secretary, Mr Eamon Devoy, said unions were seeking claims that were inflation proof and that would safeguard the progress made under social partnership. He dismissed suggestions that keeping wages ahead of inflation was creating a "wage spiral" pointing out that Irish rates of pay are well below the European standard.
"IBEC have been saying for the last 12 months that they didn't really want another national agreement and they have been boasting that they have negotiating and agreeing with their membership on a national basis and on a regional basis a strategy for an alternative to centralised bargaining."
Last month the TEEU decided to pursue pay claims immediately after it became clear that the pay talks were not going to be successful.
ICTU general secretary, Mr David Begg said the issues of pay and union recognition proved to be intractable had led to the collapse of the talks. Unions are now being advised to lodge pay claims on behalf of members for whom the the existing FFP agreement expires at the end of this month.
Mr Begg said the IBEC position would have meant a reduction in pay in real terms with unprecedented "get out" clauses for employers.
IBEC was seeking a pay pause as part of an 18-month agreement. Their ceiling on pay was a 5 per cent increase - broadly equal to inflation - to be introduced on a phased basis.
And IBEC was also insistent any agreement would contain specific compliance measures, requiring unions to adhere to the terms of the new deal.
