Pay war looms as unions dig in

THE prospect of an all-out pay war was looming last night as unions began filing pay claims up to three times greater than employers insist they are willing to pay.

Unions at Aer Lingus are to lodge a claim for a 9.5% pay increase, while the largest union SIPTU has instructed branches representing 55,000 members to seek increases of between 6% and 10%.

But employers last night said many firms could not afford these claims and warned that many cash-strapped companies need to implement a pay freeze.