Updated 10.45

The head of the country's largest trade union says it is time for employers to bring in wage increases across the board.

SIPTU President Jack O'Connor says the Irish Congress of Trade Unions sees pay rises as the key to improving Ireland's economy - the union is due to launch a campaign calling for wage hikes in the coming weeks.

Employers group IBEC says that is not an option and claims tax cuts are the key to increasing disposable incomes.

SIPTU President Jack O'Connor told Newstalk's Breakfast pay increases are long overdue - and would boost the economy:

Meanwhile, IBEC says "across the board" wage increases should be avoided because it the move would bring us back to the social partnership of the 1980s.

IBEC's Director General, Danny McCoy told Newstalk's Breakfast show the way to boost disposable income is by cutting tax: