CIF to decide on pay deal

THE EXECUTIVE of the Construction Industry Federation (CIF) is to determine today whether to accept the proposed new national…

THE EXECUTIVE of the Construction Industry Federation (CIF) is to determine today whether to accept the proposed new national pay deal.

Industry sources said strong opposition to the deal remained within the body, and that this sentiment was likely to feature at the meeting of the executive today.

It is understood that among the main concerns of the CIF is the duration of the pay pause to apply under the agreement. The deal provides for a pay pause of three months in the private sector.

The CIF had in the negotiations sought a delay of 12 months before pay rises came into effect.

READ MORE

CIF members are concerned that the registered employment agreement - covering terms and conditions in the sector - does not contain provision for companies to claim inability to pay increases.

Industry sources said there were concerns within the CIF on pay rises under the deal, which provides for increases of six per cent over a 21-month period.

It is understood that construction companies are concerned that fixed-price contracts already entered into for State projects do not take account of pay increases which may fall due next year.

Trade unions and employers' body Ibec have backed the new pay deal. Industry sources said that if the deal was endorsed today the pay rises would be inserted into the registered employment agreement for the sector, but that if it was rejected the existing rates would continue to apply.

Last week Siptu president Jack O'Connor called on the Government not to award "lucrative contracts" to companies which did not pay increases under the new deal. He said any attempt to renege on the deal would represent "nothing short of national sabotage at this critical moment for our economy".

The CIF considered that his comments referred to it and issued a strong statement criticising him. It condemned what it described as Mr O'Connor's "empty sabre-rattling and threats to block badly needed infrastructure projects in order to serve the naked self- interest of unions".

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent