Employers and unions fail to agree new pay deal

Talks on a national pay deal to replace the Programme for Prosperity and Fairness broke down in Dublin early this morning after employers and trade unions failed to reach agreement.

IBEC, which represents employers, was seeking a six-month pay freeze followed by a 3% rise after claiming that businesses cannot afford higher costs.

However, unions had refused to accept any pay rises below the level of inflation as these would effectively mean a reduction in workers living standards.

They may return to the talks table in the new year.

However, should they fail to agree on a new social partnership deal by the time the PPF expires in February, it could lead to a return of local wage bargaining for the first time since the 1980s.