Scaffolders' Dispute

Although some informal contacts between employers and striking scaffolders could still yield results, there appears little sign…

Although some informal contacts between employers and striking scaffolders could still yield results, there appears little sign, at this juncture, of any resolution to the long-running dispute. If anything, this week's advertisements in the national newspapers by the Construction Industry Federation (CIF) have widened the gap between both sides. The employers have accused the scaffolders of damaging the national economic interest by undermining inward industrial development.

The scaffolders, in return have accused the CIF of scare tactics. The unofficial action in Dublin, Cork and Limerick, which has continued for nearly three weeks, is in pursuit of pay rises variously estimated between 50 per cent and 200 per cent. In cash terms, this would mean increases of anything between £3 and £12 per hour. Although scaffolders are regarded as general operatives, and traditionally poorly paid, the stakes in this dispute remain very high. On past evidence, any concession to the scaffolders' demands could trigger a raft of claims from others in the building industry, including craft workers.

SIPTU's branch secretary, Mr Eric Fleming, has claimed that the belligerent approach by the employers means the prospect for an all-out dispute in the industry is growing nearer by the day. There is also the danger that other building workers, laid off as a result of the scaffolders' dispute, will begin to lodge claims for similar increases in pay.

It may be that the public's sympathy is with the scaffolders. A hourly rate of £6.69p, including the recent increase flowing from Partnership 2000, does not seem overly generous. Scaffolders perform an essential and dangerous task and the accident figures indicate that they are more vulnerable to death or serious injury than most other workers on a building site. It is also the case that the housing crisis is generating very sizeable profits.

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As property prices surge, builders have been able to increase their profit margins. Scaffolders complain that their wages have only increased marginally while the prices of the properties they are working on have more than doubled in the past two years. For all that, it is important to distinguish between developers who can generate huge profits and building contractors who are under pressure to deliver the lowest possible costs - including labour costs - to the developer. Scaffolding firms have to tender for business in what is a very competitive environment.

It is also the case that the scaffolders' unofficial action is in breach of Partnership 2000 and agreed industrial relations procedures. The CIF may be overstating its case but there can be little doubt that a prolonged period of industrial unrest on building sites could jeopardise plans for inward investment. The scaffolders have, in recent days, rejected a proposal which would have delivered a modest increase and a lump sum of about £300 if they returned to work. It is to be hoped that this proposal, or something like it, can be reactivated in order to allow formal negotiations to begin.

But, in the longer term, it may be that a more interventionist approach by Government is required. The bizarre economics of the construction industry - where developers gain huge profits but essential workers like scaffolders earn very low wages - needs to be re-adjusted.