'It is highly unrealistic,' was how NTUC secretary-general Lim Swee Say put it bluntly on Thursday.

Also questioning the salary projection was SNEF president Stephen Lee who said a study by his federation showed a 'very different picture'.

'Given the sentiments, this 4 over per cent seems to be too high,' he said.

The survey in question was conducted by human resource consultancy Mercer Singapore, which polled more than 230 companies here last month.

It shows base-salary increments next year will be 4.2 per cent on average. This is a drop from 5.1 per cent this year.

Mr Bob Tan, chairman of Jurong Engineering, who is also vice-president of SNEF, started the dialogue yesterday with the first question, asking panel members Manpower Minister Minister Gan Kim Yong, Mr Lim and Mr Lee, for their opinion of the projection.

It met with this quip from NTUC president John De Payva: 'The unions sent bouquets of roses to Mercer and thanked them for their optimism.'

In his response, Mr Lim appealed to union leaders not to use the projection as a benchmark when negotiating with companies.

He noted the world's gross domestic product growth next year is projected to be 2 per cent. This is lower than the 2.5 per cent in 1998 during the Asian financial crisis, and lower than the 2.3 per cent in 2001 after the Sept 11 terror attacks in the United States.

At the same time, the International Labour Organisation has just projected that by the end of next year, there will be 210 million jobless workers all over the world.

'So in the labour movement, we are very concerned that with this rapid drop in the growth of the economy, many busineses will be affected and very badly, and many workers will be affected and quite badly as well.

'If you ask me, are we concerned whether wage growth will be 4 to 5 per cent, my reaction is, it is highly unrealistic, and I hope that you, brothers and sisters, share my sentiment.

Read the full story in Friday's edition of The Straits Times.