HOTELIERS AND small businesses said they would be unable to pay the increases proposed in the agreement, while the construction industry expressed grave reservations about the deal.
However, the employers' umbrella group Ibec said it was the best agreement that could be reached under the circumstances, a view echoed by union leadership.
Ibec director general Turlough O'Sullivan said: "The agreement will go some way towards providing the certainty and stability needed by employers in an increasingly unpredictable economic environment. It will also send a positive message to international investors."
Over the coming weeks Ibec will consult with members at regional and sector councils. A final decision will be made by the Ibec national council.
Ictu's David Begg said: "Members know that what has been negotiated does represent the best efforts of negotiators over a very long period of time. If we were to stay there until next Christmas we couldn't achieve more by negotiation so it's open to democracy now to decide."
Mr Begg said unions would be consulted over the next four to six weeks
However, the Irish Small and Medium Enterprises Association (Isme) said it was "outraged" at the draft terms of the new agreement, claiming it could result in "wholesale redundancies".
Isme chief executive Mark Fielding said: "The agreement will have a devastating impact on our sector of the business community."
It was "beyond comprehension" that Ibec had agreed to a deal with terms "far superior to what was on offer just four weeks ago".
The Construction Industry Federation (CIF) still had some concerns about the outline document and met the Taoiseach to discuss it yesterday.
The director general of the CIF, Tom Parlon, said the body would be referring the draft deal to its members.
He said there were "positives and negatives" in the outline document, and he expressed concern in relation to the pay element in an industry under pressure.
Asked if he would be recommending the deal to CIF members, Mr Parlon said he would be referring the proposals to them and let them decide.
Hoteliers said the sector would be unable to pay the increases unless there was a "substantial improvement" in its trading environment.
"The hotel sector is already committed, under the legally-binding Joint Labour Committee system on October 16th, 2008, to a pay increase of 2.5 per cent - the final phase of the previous agreement," the Irish Hotels' Federation (IHF) said in a statement.
General secretary of the Irish Bank Officials' Association (IBOA) Larry Broderick said "while some progress has been made on workplace issues, the outcome in relation to pay and collective bargaining has fallen short of our expectations".
"A three-month pay pause followed by modest wage increases worth just over 6 per cent cumulatively over a further 18 months will not insulate our members against the impact of inflation.
"For workers in the financial services sector, this is particularly disappointing since - notwithstanding the current volatility on global markets - the major financial institutions in Ireland remain profitable," he said.
"On the issue of collective bargaining, the provision to legislate to outlaw the victimisation of trade union members is a modest, if welcome, measure. In this straitened economic climate, we believe workers need more protection against exploitation."
He said the IBOA's executive committee would give detailed consideration to the proposals .
Chambers Ireland, however, welcomed the deal, saying it would provide "stability" in the present economic environment.
"Given that many companies are currently experiencing pay freezes, we remain concerned that the unions continue to seek excessive pay rises which may contribute further to the economic downturn," it said in a statement yesterday.
However, its chief executive, Ian Talbot, sounded a note of caution in relation to the national framework on the employment and rights of temporary agency workers. He said any measures introduced must not reduce labour market flexibility and Ireland's competitiveness.