THE CONSTRUCTION Industry Federation (CIF) has said it will seek the cancellation of the registered agreement governing pay and conditions in the building sector if the Labour Court does not approve controversial plans to allow it to cut pay rates by 20 per cent.

The CIF is looking for the Labour Court to alter the current registered employment agreement in the sector to allow for the proposed 20 per cent reduction in wage costs as well as the introduction of a new entry rate and changes to overtime and travel allowances.

The move is being opposed by trade unions.

In a submission made yesterday to the Labour Court, the CIF argued that the industry was going through probably the most severe and rapid downturn ever experienced. It said that more than 200,000 employees had lost their jobs and hundreds of companies had folded. “Without immediate action to arrest the situation the industry is in danger of total collapse,” it said.

Fergus Whelan of the Irish Congress of Trade Unions said building workers had already seen their earnings reduced by 40-50 per cent as a result of cuts in bonuses, piece rates and overtime.

The director general of the CIF Tom Parlon said labour rates under the registered agreement did not stack up from the point of value for money for consumers.

It is understood that the trade unions argued that they did not believe that cutting wages would create additional jobs in the construction sector.