Unions resist a 20% cut in construction pay

A 20 PER CENT pay cut for construction workers was the subject of “robust exchanges” between unions and employers yesterday.

The cut, being sought by the Construction Industry Federation, was discussed yesterday at a meeting of officials from the federation and the Irish Congress of Trade Unions (ICTU) at the Labour Relations Commission’s offices. Afterwards, ICTU industrial officer Fergus Whelan said the federation proposals – in addition to a 7.5 per cent pay cut last year – include measures which would reduce pay for certain work to the minimum wage. The employers’ real agenda was to end Registered Employment Agreements (REAs), he claimed.

REAs are agreed minimum rates of pay and conditions of employment that are registered with the Labour Court, making them legally enforceable.

“We told them we would do whatever we can to defend the REAs,” Mr Whelan said.

He said the ICTU would recommend resistance to the proposals. “There was no meeting of minds on that big issue,” he said.

“The first thing we’re going to do is . . . to consult with building workers; employed and unemployed. We’re going to urge them to resist this.”

Federation director general Tom Parlon said REA rates were an obstacle to recovery. “It is in the construction unions’ interests that the industry returns to competitiveness, but the current REA rates are slowing that process down. Tender prices have fallen and continue to fall, with the result that builders complying with REAs are just not able to compete.”

The sides agreed the industry had been “let down” by the Government which they said had not done enough to protect jobs and was not attracting enough investment for major projects.