More than 140,000 construction workers are being offered increases which will see basic pay for general operatives increase from £7.29p an hour to £11.16p.
The starter rate for general operatives will increase from £6.40p an hour to £7.76p. When the 15.75 per cent payable under the PPF is taken into account, the total increase in basic rates for top-grade general operatives will be 43.94 per cent.
The proposals have been put forward by the Labour Relations Commission and are being recommended by the construction group of trade unions and the Construction Industry Federation for acceptance.
Both sides hope the new deal will bring to an end the rash of unofficial industrial strikes in recent months. It also attempts to address labour shortages in a sector where employment has grown by 70 per cent in four years.
In many ways the new pay package simply reflects the reality on the ground. While the minimum craft rate will be £11.50p an hour by 2002, many bricklayers are already earning between £15 and £19 an hour.
Nevertheless, it is a significant gain for general operatives in closing the gap, as the top category of general operatives will be earning £11.16p an hour, or 94 per cent of the craft rate, by July 1st, 2002.
The SIPTU president, Mr Des Geraghty, welcomed the outcome of the negotiations yesterday.
"Construction, along with public transport, has been identified as a key sector for the economy," he said. "This modernisation agreement reflects the new workloads and responsibilities of construction workers, as well as addressing the problem of labour shortages by making the occupation more attractive."
The increases do not rule out further benefits that might arise from an ongoing review of the Registered Employment Agreement for the sector which will look at other issues.
SIPTU has negotiated a pay rebate of £400,000 for 1,100 Aer Lingus cabin crew who were not being fully credited with shift premiums because of an accounting error. This was part of a package of concessions including promotions and improved staffing levels which the union announced yesterday.
The move was also clearly a response to IMPACT's decision to hold its first formal meeting for cabin crew at Dublin Airport on Thursday evening. More than 1,350 cabin crew have defected from SIPTU to IMPACT, but SIPTU still has 400 members at the airport, and its regional secretary, Mr Brendan Hayes, confirmed yesterday that it intends defending its exclusive right to negotiate for this key category.