Strike action threat after contractors reject pay deal

THE CONSTRUCTION industry was “facing a return to industrial action”, a trade union said last night following a rejection of Labour Court recommendations on electricians’ pay by one of the electrical contractor’s bodies.

Members of the Association of Electrical Contractors of Ireland (AECI) voted overwhelmingly (80 per cent) to reject the proposal that electricians would receive a 4.9 per cent increase.

There was a high turnout for the vote of the AECI, which represents up to 300 small- and medium-sized contractors.

“Members are adamant that it would be impossible to recover these cost increases from customers in the current economic climate. Electrical contractors are not in a position to carry these costs themselves” the AECI said in a statement. The AECI said its members were “under immense financial pressure” due to requests for price reductions and being locked into fixed-price contracts.

“It is clear from feedback of AECI members that no increase can be afforded until the Government addresses the issues of requalification, fixed-price tendering, non-compliance with REA and electrical contractors from out of state” the AECI said.

The AECI is due to meet the National Joint Industrial Council next week and said it hoped for “a long lasting solution which was acceptable to all”.

Technical Engineering and Electrical Union (TEEU) general secretary Owen Wills said he was “ disappointed at electrical contractors’ decision”.

He called on Tánaiste and Minister for Employment Mary Couglan to set up an investigation into the industry as proposed as part of the process to resolve the dispute. Some of the issues could not be resolved internally as they relate to external problems such as the “undermining of the activities of legitimate and compliant companies and electricians”.

Last week the Electrical Contractors Association (ECA), which represents about 45 of the biggest contractors, agreed to accept the Labour Court’s recommendations.

The Labour Court proposal provided for a pay increase of 4.9 per cent in two phases, comprising a 2.5 per cent increase on September 1st and 2.4 per cent from January 1st.

It followed a five-day strike by members of the TEEU which closed most major building sites in the country.

The TEEU executive agreed unanimously to accept the Labour Court recommendations, but reserved the right to resume strike action if all electrical contractors do not abide by it.