The organisation which represents small businesses says Government plans to increase the minimum wage will mean jobs will go.
The Irish Small and Medium Enterprises Association now say that a 10% increase in salaries to €7 an hour from next February is totally unacceptable.
ISME are calling on IBEC to reject most of the offers made last night by the government.
Even while IBEC and ICTU are still considering the talks, the ISME say the proposed increase in basic pay over the next 18 months at 7.2%, is two-thirds more than the current average.
The organisation insist that the pay increases will only suit large employers who can afford the rises.