Business group Isme has called on the Government to introduce emergency legislation to allow the Government to introduce public-sector pay cuts.
The group, which represents small and medium businesses, said the legislation was “vital” in an effort to cut public spending.
“As the economy continues to deteriorate, with many private sector companies already introducing pay cuts just to survive, it is totally unrealistic to think that savings of this magnitude can be achieved without cuts in Government spending,” Isme Chief Executive Mark Fielding said.
“The fact that public sector pay accounts for almost 50 per cent of current expenditure means that the need for payroll cuts is beyond question.”
The State’s largest union yesterday warned of the likelihood of strikes and civil disruption if the Government imposes cuts in public sector pay and social benefits.
In an internal letter to members, Siptu’s three most senior officials, Jack O’Connor, Brendan Hayes and Joe O’Flynn, said the problem in the public finances was “very serious”. They wanted a negotiated agreement on economic recovery involving a “social solidarity pact”, with all sectors contributing.
General secretary of the primary teachers' union INTO, John Carr, said the union was not prepared to discuss pay cuts and would strongly resist any attempt to target teachers for pay cuts.
"Primary teachers didn't cause the national reversal of fortunes," said Mr Carr.
"Contrary to what some commentators would have people believe, there is no bloated public service when it comes to teaching."
"The fact that eighty percent of education spending goes on salaries reflects low education spending not high salaries. Teachers here may well earn more than teachers in other countries but not when the cost of living is factored into the equation."
The Irish Nurses' Organisation today claimed any pay cuts in the public sector could be illegal.
But Mr Fielding said, in the national interest, “it is imperative that the Government is allowed to make these cuts without being challenged in the courts.
“Long drawn out legal battles need to be avoided at all costs, simply put, we need these reductions now and cannot afford to wait.
“The public sector unions must realise that a ‘national plan’ to address the catastrophic public finances cannot avoid pay cuts in the public sector.”
