Construction unions discuss pay cut recommendation

TRADE UNIONS representing workers in the construction sector are to consult with members on a Labour Court recommendation which…

TRADE UNIONS representing workers in the construction sector are to consult with members on a Labour Court recommendation which proposes pay cuts of 7.5 per cent.

The construction industry committee of the Irish Congress of Trade Unions (Ictu), which comprises seven unions, met yesterday to consider the Labour Court recommendation which had been accepted by the Construction Industry Federation on Tuesday.

Fergus Whelan of the Ictu said that different unions had different rules and traditions about how such consultation should be carried out. He said in some cases unions would hold ballots of members and in others the Labour Court recommendation would be considered by the executive committees of unions.

He said there was a feeling at the meeting yesterday that it would be difficult to ask workers to accept a pay cut in return for nothing.

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Mr Whelan said in other cases where workers had agreed to pay cuts there had been guarantees in issues such as job security.

The Construction Industry Federation said its executive body, which is made up of nominees of each of its branches and associations, had backed the Labour Court recommendation at a meeting on Tuesday.

The federation had originally sought a cut of 20 per cent in workers’ pay. It had argued that the industry was going through probably the most severe and rapid downturn it had ever experienced, and that employers could no longer afford to pay existing wage rates.

It had said that more than 200,000 employees had lost their jobs, and hundreds of companies had folded.

Pay and conditions for more than 100,000 workers in the construction sector are governed by a registered employment agreement.

The Construction Industry Federation had sought for this to be amended to allowed for a 20 per cent pay cut and for the introduction of new, lower entry rate for workers in the sector. It also sought new arrangements for the operation of overtime and reforms of travelling allowances.

The Labour Court recommendation, which was issued in July, said that the proposed 7.5 per cent pay reduction should be regarded as a “temporary measure” or derogation from rates set out in the current registered employment agreement.

It said the continued application of the pay cuts should be reviewed in January 2012, and in each subsequent year.

Martin Wall

Martin Wall

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