The general secretary of SIPTU, Mr John McDonnell, last night strongly criticised the Government's "conflicting signals" on tax, and said that workers required clarity in advance of the December Budget.
This year the Taoiseach and the Tanaiste seemed to be charting different courses on next year's Budget, he said.
"The Taoiseach has indicated more than once that the general thrust of the tax changes in the forthcoming Budget will mainly be to benefit the lower and middle income earners. The Tanaiste, Mary Harney, has repeatedly advocated cuts in the 44 per cent top rate of income tax - which would obviously benefit high earners more," Mr McDonnell told the SIPTU south west biennial delegate conference in Tralee, Co Kerry.
Only a combination of pay and tax measures would compensate for the negative impact of rising inflation.