The Association of Electrical Contractors of Ireland has written to the Labour Court seeking to remove itself from an agreement governing the rates paid to electricians.
If successful, the move could have implications for the hourly earnings of up to 10,000 people.
Association president Brian Flanagan said the registered employment agreement, which set pay rates at between €20.74 and €21.49 per hour, had become a burden on his members.
"It has propagated the rise of out of State and non-compliant contractors now operating with impunity...thus putting our members at a severe disadvantage and in danger of going out of business," he said.
Some 90 per cent of the association's members voted in favour of the move and Mr Flanagan said it was with regret he announced the move. He said the association had "tried in vain" to engage in meaningful talks with the Technical Engineering and Electrical Union (TEEU) on the subject.
"The [association] will be available at all times to discuss any proposals that would give stability to the electrical industry...taking into account the economic climate that pertains at this time," Mr Flanagan said.
The TEEU said it would vigorously resist any attempt to dismantle the agreement and described Mr Flanagan's claims that it failed to engage on the matter as disingenuous.
TEEU assistant general secretary Arthur Hall said the union and association had arranged to sit down and talk about a review of the agreement on October 12th but the association cancelled the meeting and then moved to pull out of the agreement.
The move follows a Labour Court recommendation that construction workers take a temporary 7.5 per cent pay cut. The Construction Industry Federation had sought a reduction in pay of up to 20 per cent, given the difficult circumstances facing the building trade, but has now accepted the Labour Court recommendation.
The TEEU voted unanimously against the proposal but other unions including Siptu,which represents the largest number of construction staff – are consulting their members on the matter.