As many as 64 per cent of firms expect to introduce a pay freeze in the next three months, according to a new Ibec survey of 760 businesses employing up to 77,000 workers.
The survey reveals that up to 62 per cent of companies also expect to implement a ban on recruitment over the coming months.
Pay reductions are likely to be introduced at 20 per cent of firms surveyed by Ibec while a further 15 per cent of companies said that wage cuts are under consideration.
A third of businesses said they expected to axe jobs with an additional 24 per cent of companies considering letting staff go. The survey also shows that short-time working or lay-offs are expected in 29 per cent of Irish firms, while 23 per cent are considering changes to employees' terms and conditions.
Ibec today called for a new national agreement which would help to secure economic viability and protect jobs.
Speaking at a seminar at Clontarf Castle in Dublin today, Ibec director Brendan McGinty said the organisation was exploring the basis for an agreement which recognises at a minimum, the need for a pay pause for a significant period.
“The need for a new agreement on pay is borne out by the measures being taken by employers to respond to the recession," said Mr McGinty.
“In this context, the successful conclusion of discussions between the social partners on a new national agreement will create the environment to stem the loss of jobs. This will send out a positive signal to the international community that we can work together to address our problems in a constructive manner,” he added.
The Ibec survey concurs with recent studies from both Isme and the Small Firms Association (SFA) which show that more organisations are introducing pay freezes and considering job cuts.
