The new pay agreement, the Programme for Prosperity and Fairness, had the capacity "to transform Irish society", said the Minister of State for Enterprise, Trade and Employment, Mr Tom Kitt.

He said it represented a "major assault on poverty and exclusion". The programme consisted of an integrated package of pay, tax and social inclusion measures and had to be considered in that context. "It will deliver substantial increases in incomes."

Mr Kitt said he would be publishing legislation on part-time work which would prevent part-time workers being treated less favourably than full-time workers.

He said he also planned to introduce a Carers' Leave Bill in October.