In a series of media interviews, the union said: “Pay restoration must now be the priority to improve dented living standards in all sectors and support the fragile recovery by getting people spending in the local economy again.” IMPACT spokespeople also rejected claims of a huge public-private pay gap.

The union’s pay restoration strategy, agreed at its May delegate conference, calls for pay restoration in the public, private and community sectors, and urges continued action to tackle unemployment.

IMPACT recently welcomed public service minister Brendan Howlin’s confirmation that there would be talks next year on the start of pay restoration in the public service, where average earnings have fallen by around 13% since 2009. But the union also warned members that there would be stiff resistance to pay restoration from the media and others.

Although it seems certain that the forthcoming budget will include some form of tax relief, IMPACT rejects the idea that tax cuts can be an alternative to pay increases as Ireland comes out of recession. The union says focussing solely on tax cuts would leave taxpayers subsidising low-paying but profitable employers, and would mean more cuts in public services.

The last 18 months have seen a growing number of modest pay rises in profitable private sector companies.