Chambers Ireland demands restraint in new pay deal

A leading business group is demanding that any pay increases agreed under the social partnership process be fixed at two percentage points below economic growth.

Chambers Ireland, which represented chambers of commerce across the country, claims such pay restraint is needed to protect the competitiveness of the economy.

The organisation is due to debate the issue at a conference in Dublin later today.

Speaking ahead of the meeting, Chambers Ireland chief executive John Dunne said there was no room for complacency.

"We're doing all right at the minute, but the economy looks far better than it really is," he said.

"We've got a situation where most of the growth in the economy at the moment is being fuelled by increases in domestic credit, while our export performance and our productivity are both falling.

"That's simply unsustainable into the future and we've got to get a bit real about pay negotiations."