Most of the Ireland’s commercial semi-state companies are in talks with their unions on a pay freeze for the remainder of the year at least.

The Gas Board, utilities company Bord na Mona, the Dublin Airport Authority and postal service An Post, have all invited the unions to talks about payment of the first 3.5% pay increase that due under the national pay agreement agreed last September.

Also, all eyes will be on the Irish Aviation Authority, which is due in the Labour Court soon to plead an inability to pay the first phase of the pay agreement.

Last month, the state electrical company, the ESB, attracted widespread criticism from government ministers and the employers’ organisation, Ibec, when it paid the 3.5% first phase of the agreement.

In January, Ibec called for the deferral of the national pay agreement for at least 12 months to restore competitiveness. Though profitable, the ESB’s decision to pay the increase was seen as undermining the Government and Ibec‘s efforts to tackle the recession.

Since then, the ESB said it will not pay the second-phase 2.5% increase that is due in six months’ time.

In the broader private sector, most companies are holding back on paying any increases to see if there is any formal renegotiation of the pay agreement.

But some major companies such as Diageo, GlaxoSmithKline and Wyeth have gone ahead and paid the increases

Last week, Marks & Spencer concluded a productivity deal with its staff that will see some staff get up to a 6.7% rise, including the 3.5% first phase of the national pay agreement.