IBEC is urging the government not to row back on its pledge
to introduce public sector pay cuts in the budget, despite the growing threat of strike action from government employees.

The call comes as the government prepares for talks with unions this week on the plan for public sector cuts in December.

In its pre budget submission ibec says there should be no relaxation of the target to reduce the general government deficit below 3 per cent

The most significant cutback being planned in December is a 7 per cent reduction in the public pay bill, something Government employees are strongly resisting.

IBEC is also calling for an ambitious stimulus package to protect existing jobs and get those on the dole back to work

The business group says employers prsi should be reduced, and there should be a state sponsored credit insurance scheme.