IBEC predicts lengthy and difficult pay discussions

The employers' body IBEC is predicting that talks on a new national pay deal will be lengthy and difficult.

However, spokesman Turlough O'Sullivan says he is confident a deal can be done as everyone is entering the discussions in the right spirit.

Speaking as the negotiations got underway in Dublin today, he said the social partnership process had served the country well and many serious difficulties had been overcome in the past.

The Taoiseach, meanwhile, told reporters at Dublin Castle that social partnership was the only way to maintain stability in the workplace and the economy.

Trade unions have warned that they are prepared to abandon the process if it fails to protect employment rights and ensure that wage rises match the rate of inflation.

However, Minister for Finance Brian Cowen made it clear this morning that the Government would be pushing for any increases to be linked to productivity.