The Small Firms Association has described calls for a minimum wage as an exercise in vote grabbing.
Such a policy would worsen unemployment, the association's director, Mr Brendan Butler, claimed.
Small firms had the potential to create 51,000 additional jobs in 1997. The introduction of a statutory minimum wage could result in employers shelving expansion plans, he said.
Rather than introduce a minimum wage, politicians should address takehome pay by reforming PAYE and PRSI. The average worker is concerned about takehome pay and is not concerned with how it is achieved, he said.