IBEC says its disappointed that the group that represents workers pulled out of the Low Pay Commission.
The Irish Congress of Trade Unions made the decision after other members disagreed that the minimum wage should be increased by 2 percent next year.
IBEC, which represents business owners, says many businesses are still relying on the wage subsidy scheme and claims there is little evidence to show pay increases across the private sector.
ICTU General Secretary Patricia King said "There is no evidence that an increase in the minimum wage would cause job loss. From our point of view, there's an issue here of equity.
"How could you tell a minimum wage worker that their wage increase would increase 1% while other sectors across the economy would be 2?"
Chief Executive of employers body ISME, Neil McDonnell also has strongly criticised the approach of ICTU.
Describing the walk as a "hissy fit", Mr McDonnel warned that approving any wage increase would lead to a rise in the numbers on the live register.