THE CONSTRUCTION industry is to seek meetings with the Government and trade unions to convey its "real difficulties" with provisions of the proposed new national pay deal. The executive of the Construction Industry Federation yesterday deferred a final decision on whether to accept the terms of the agreement until next month.
Informed sources said there had been a "quite negative" reaction to aspects of the proposed agreement, in particular the three-month pay pause. In negotiations leading up to the agreement of the deal last month, the federation had sought a 12-month pay pause.
A spokesman for the federation said the executive had instructed its director general Tom Parlon to seek meetings with the trade unions and the Government to express its real difficulties with the three-month pay pause and to point out that there was no provision for the operation of an "inability to pay" clause in the sector.
Sources said many firms in the sector had argued that the industry was being asked to agree to fixed-price contracts for 36 months with the Government, which effectively represented a pay pause for that period.
The federation was represented at the talks last month at which the proposed new pay deal was finalised. However, informed sources said yesterday that the federation's leadership had said at the time that it would bring the measures to its members, but could not guarantee acceptance.
Meanwhile, the executive of the Irish Bank Officials' Association has said the measures in the proposed new deal are the best that can be achieved through negotiation and without recourse to industrial action.
However, at a meeting yesterday, the executive stopped short of formally recommending the proposed agreement.
The association's members are to vote on the proposals in a postal ballot over the coming weeks.
The association's general secretary Larry Broderick said its executive was disappointed with many aspects of the deal, "especially when considered in conjunction with last week's Budget".
"However, in light of the ongoing crisis in the financial services sector, both globally and in Ireland, the executive committee concluded that the terms on offer are the best available in very difficult economic circumstances.
"The consensus view of the executive committee is that the only way these terms could be improved upon would be through industrial action. Such a course would not necessarily secure any significant improvement. However, it would almost certainly result in significant disruption to the financial services sector and to the wider economy at a time of severe difficulty," he said.
Mr Broderick said the union's priorities were focused on securing commitments from employers on job security, the protection of existing terms and conditions of employment - including pension provision - and a comprehensive review of business targets for staff in light of the dramatically changed circumstances.
A simple majority in the ballot of members will determine how its delegates will cast their votes at the Irish Congress of Trade Union's special conference on the deal in November.
The executive of Siptu, the country's largest trade union, is to meet today to consider the pay deal. It deferred a decision to allow for a meeting to take place between senior trade union leaders and the Taoiseach on their concerns about measures in the Budget.
The proposed agreement involves increases of 6 per cent phased over a 21-month with an additional half per cent for lower-paid workers. Employees in the private sector face a three-month pay pause before the new increases are implemented, while there would be an 11-month pay pause in the public sector.