Negotiations on pay will begin in earnest today, writes Chris Dooley, Industry and Employment Correspondent
Nearly all of the Republic's two million workers will be affected by the outcome of the pay talks which opened yesterday.
While some 600,000 employees will be directly represented at the talks through their union negotiators, even those in non-unionised workplaces will have an interest in the result.
The talks, being held as a separate strand within the overall framework of negotiations on a new partnership agreement, are expected to continue for up to three weeks.
They began yesterday at Government Buildings with face-to-face discussions involving union, employer and Government representatives.
It was a typical opening exchange, with all sides setting out their priorities in broad and, it must be said, predictable terms.
The Irish Congress of Trade Unions delegation explained why, given the continuing economic boom and record profit levels being enjoyed by employers, a generous pay settlement would be appropriate.
The main employers' bodies, the Irish Business and Employers' Confederation and the Construction Industry Federation, took a directly contrary view, outlining the critical need for wage moderation if the economy is to restore lost competitiveness.
The Government, in its capacity as an employer, emphasised that major public service reforms are required in exchange for pay increases.
When the parties return today, negotiations will begin in earnest, with the employer and union delegations assigned to separate rooms.
Department secretary general Dermot McCarthy will hold separate discussions with each side, shuttling from room to room in his efforts to bridge the gap between them.
He will be aided by senior officials such as assistant secretary Philip Kelly who, like McCarthy, is an experienced social partnership facilitator.
McCarthy and his team will explore the scope for manoeuvre on each side and tease out the respective bottom lines.
For example, he will want to establish how committed employers are to the need for a three-year pay deal, as opposed to the unions' desire for one of shorter duration.
Is the unions' demand for a local bargaining clause a deal-breaker, or would they drop it in return for a short pay deal and a chance to revisit the issue a year from now?
Only in the final stages will the parties begin to put figures on the pay increases that will be a central element in any new deal.
If a deal can be done, Ibec and Ictu will then take the result back to their constituencies to have it ratified. This means 600,000 workers get to vote on the outcome, but the non-unionised majority will also benefit from whatever increase is agreed.
At the higher end of the pay scale, non-union high-tech multinationals, many of which pay above the going rate for their particular sectors, do take nationally agreed pay rates into account.
At the other end of the scale, those on the minimum wage will benefit if the parties agree that an increase is due. In general, centrally agreed pay deals tend to set a benchmark which is then applied across all sectors of the economy.