As the employers group IBEC prepare to table an opening offer of 2% to 3% per year at the national pay talks in Government buildings, one of its biggest members, the retail giant Tesco, have offered pay increases of 3% to 13% to its staff.

The British-based multiple has also offered its 12,000 staff in Ireland pay increases a profit share deal, an increase in the Christmas bonus, an extra day's leave and guaranteed hours of work. Mandate, which is the main union at Tesco is understood to have recommended rejection of the new Tesco pay offer.

It is understood that Ibec had tried to convince one of its most influential members not to go off on a solo run for fear of sparking a pay war.

Ibec felt that this would seriously undermine efforts to peg back national pay increases to around the inflation rate of 2.5%. The employers' body wants to keep pay increases to a minimum in an effort to boost Ireland's flagging competitiveness.

But Tesco wanted the freedom to do its own deal targeted at retaining high quality staff which, it is understood it felt was not possible under the inflexible national partnership agreements. In the same week, Allied Irish Bank has offered its 8,000 staff a 10% pay increase plus a profit share deal worth an additional 5%.

Though the AIB deal is a 'pay for change deal' it is seen as a strong indication that some of the more profitable private sector companies can afford and are willing to pay well over the nationally agreed pay rates.

Bank of Ireland economist Dan McLaughlin has said that while both pay deals were specific to the companies, "they will raise expectations" at the national pay talks. "You can have all the national pay deals you like but the bottom line is that if you have a buoyant economy with full employment, then pay rates will rise" said McLaughlin.

"These deals highlight the disadvantage of national pay deals which may be too high for some and too low for others", he added.

Ibec negotiator Brendan McGinty claimed the two deals would not impact on the pay talks as they were separate from the process and such agreements had been arranged during previous national pay talks.

Mandate has already pulled out of the national pay talks on the basis that increases of 3% is of no benefit to its lower paid members.