The Ryanair dispute featured prominently in discussions between the Taoiseach, Mr Ahern, the Tanaiste, Ms Harney, and leaders of the Irish Business and Employers' Confederation at Government Buildings yesterday.The meeting had been called to discuss EMU, the economic outlook and Partnership 2000. Both sides agreed that more intensive work was needed in the coming year to develop social partnership so that economic growth could be sustained.The Taoiseach is understood to have made clear his concern that the Ryanair dispute is undermining the progress made so far in resolving the problem of trade union recognition.Both sides agreed that a voluntary code was still the best way of resolving the recognition problem. In a statement afterwards they "confirmed the importance of modernising our industrial relations system, including finalising the work of the High Level Group on trade union recognition".The statement reiterated the commitment given by the Government to the ICTU when they met last week, that the "social partners will develop a process to look in detail at ways and means of underpinning moderate wage increases with significant tax reform weighted in favour of lower and middle incomes".After yesterday's meeting the director-general of IBEC, Mr John Dunne, said he was reasonably confident that inflation could be contained if we did not allow ourselves to "talk it up". The best guarantee of stability, job-creation and prosperity was continuing economic growth.Meanwhile, SIPTU continued with its six-hour stoppages by baggage-handlers at Ryanair yesterday, and the company continued to insist that the stoppages were not affecting services. Neither side is expected to escalate the dispute ahead of the Labour Court recommendation.If the court recommends that the company recognise the union, however, and Ryanair continues not to do so, SIPTU can be expected to escalate its action. There will also be growing pressure from the ICTU for the Government to intervene, something Government sources said last night would have to be considered.