Employers seeking reform of building sector pay agreements

CONSTRUCTION INDUSTRY employers have said they could not support the continued operation of the system for setting pay and conditions…

CONSTRUCTION INDUSTRY employers have said they could not support the continued operation of the system for setting pay and conditions in the sector without the introduction of radical reforms.

In its submission to the Government-appointed review of the system, known as registered employment agreements, the Construction Industry Federation (CIF) maintains that these have acted as a barrier to improved competitiveness.

The federations says that among the problems in the agreements governing the construction and electrical sectors are uncompetitive pay rates as well as obsolete travel-time payments and other costs elements.

It also says a view exists among unions and the Labour Court that such agreements represent the minimum rather than the agreed terms and conditions to apply in the industry.

READ MORE

In its submission, the construction employers say that over the past 44 years the agreements system has helped to deliver industrial peace and a stable environment for investment. However the federation argues that changes must be introduced.

It says a new mechanism must be introduced to determine labour costs covered by agreements. “In the absence of a mechanism that delivers a speedy, efficient, short-notice variation process . . . CIF acting on behalf of employers should have the option to obtain derogations for a fixed period.”

The submission also maintains that agreements should be subject to termination dates.

The federation maintains that low pay is not a feature of the sector. It says the entry rate for general workers in the sector with no prior experience, €31,500, is higher than that earned by recently-qualified accountants, engineers, nurses, Garda recruits and entry-level solicitors.

Martin Wall

Martin Wall

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