Approval of employment order will mean construction sector pay rise

A sectoral employment order (SEO) setting out pay increases for about 50,000 workers in the building industry has been approved by Minister of State for Employment Affairs Neale Richmond and is to come into effect in September.

The move comes on foot of a recommendation from the Labour Court, which oversaw a review of terms and conditions in the sector in accordance with the process set out in the Industrial Relations (Amendment) Act 2015.

Under the terms of the order, the minimum hourly rate paid to craft workers including bricklayers, carpenters and plasterers will increase to €21.29 on September 18th and rise to €22.24 in August 2024.

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The minimum hourly rate for a labourer with more than two years’ experience will break €20 for the first time when next year’s increase kicks in. The order also sets out core working hours for the industry along with minimum overtime and other premium payments. Rates for apprentices, which are tied to the pay of craft workers will also increase under its terms.

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“This SEO will make a real difference to workers in the sector not only by increasing rates of pay but also by providing certainty for workers,” said Mr Richmond on Friday. “The inclusion of a legally binding disputes procedure will also ensure that any disputes that arise in the sector can be addressed effectively and fairly. Ensuring that our construction industry is strong and dynamic is a priority of the Government, as this is crucial to meeting our housing needs.”

Increase below inflation

The pay increases provided for in the order, which will need to be approved by the Oireachtas before it can be implemented, combined with those recently granted, come to 4.7 per cent for this year, which is below the rate of inflation.

It is open to the unions representing workers in the sector, including Siptu, Unite and Connect, to pursue additional increases with individual companies and several claims have been lodged in the sector based on an inflation rate of 8 per cent.

The five unions affected, which also include craft unions Batu and Opatsi, are due to meet next week to discuss the terms of the order.