Madam, – Vincent Browne’s reputation as a well informed commentator suffered a drop in my estimation (Opinion, July 8th). Mr Browne seems to believe that the recession in the building industry is a relatively new phenomenon, that the electrical contractors had rates for work in 2007 and 2008 that they should have passed on to their workers.
Contractors continue to employ electricians because they were the lowest tender for the job. If the job they tendered for in 2006 earned them a profit, that now has to go towards filling the losses they made from 2007 onwards.
As a consulting engineer working in the industry I sit at the opposite side of the table to the electrical contractors. In the third quarter of 2007 all of us in the industry knew that a downturn was here. In early 2008 tenders coming in were down up to 20 per cent. Since late 2006, or at worse early 2007, every person in the industry whether they were architects, engineers, tradesmen or labourers has suffered either the loss of their jobs, being put on a three day week, or a cut in salary.
It is untenable to suggest that everyone in the industry must suffer except the electricians. Every other day contracting companies are folding, so that the action of these electricians is utterly ludicrous. – Yours, etc,
Madam, – The ongoing electricians’ pay dispute requires an urgent solution before it mushrooms into an all-out national strike with the attendant long term damage this would undoubtedly inflict on an already fragile Irish economy.
The Technical, Engineering and Electrical Union (TEEU) maintains that they are not requesting a pay raise for their members but rather payment of money owed pursuant to their agreement with the Electrical Contractors Association (ECA) in 2007.
The ECA for their part maintain that they cannot pay this increase. Given the contraction in the construction industry, with the loss of more than 100,000 jobs, experienced over the last 12 months it is difficult not to have sympathy with the ECA position.
However, it also sets a dangerous precedent if previously agreed contracts are reneged upon.
I would therefore suggest that given the current economic downturn the ECA agree to pay the increase either in stages over a defined period or defer this payment for a further two years to allow some degree of economic recovery.
The TEEU for their part should agree to a 10 per cent pay cut for their members.
This solution represents a sensible compromise such that the contractors are not bankrupted and the electricians receive what is owed to them whilst at the same time lowering their costs in line with the current economic realities, thus helping to put Ireland back on the road to recovery by restoring our competitiveness. – Yours, etc,