The Construction Industry Federation (CIF) has gone to the Labour Court to seek approval for a 20% cut in pay rates for workers.
The CIF said to RTE that tender prices have dropped by 30% since the economic downturn began but that wage costs have not reduced in line with that reduction.
At the beginning of 2011 an agreement between the CIF and unions led to a 7.5% cut in wages for construction workers, however, the CIF says further reductions are needed to try and prevent more job losses and improve competitiveness.
In addition to the 20% pay cut for all construction workers, the CIF is also proposing that new entrants start on the statutory minimum wage of €8.65. They are also seeking changes to overtime, travel and subsistence payment agreements which are laid out int he current REA
The Congress of Trade Unions is arguing that further pay cuts will help to protect jobs, however it says construction workers are prepared to look at pay related costs in a creative way but will not accept a "slash and burn approach" to solving problems in the industry.
This argument is sure to run and we will follow this issue closely in the coming days and weeks
The Construction Industry Federation (CIF) has gone to the Labour Court to seek approval for a 20% cut in pay rates for workers.
The CIF said to RTE that tender prices have dropped by 30% since the economic downturn began but that wage costs have not reduced in line with that reduction.
At the beginning of 2011 an agreement between the CIF and unions led to a 7.5% cut in wages for construction workers, however, the CIF says further reductions are needed to try and prevent more job losses and improve competitiveness.
In addition to the 20% pay cut for all construction workers, the CIF is also proposing that new entrants start on the statutory minimum wage of €8.65. They are also seeking changes to overtime, travel and subsistence payment agreements which are laid out int he current REA
The Congress of Trade Unions is arguing that further pay cuts will help to protect jobs, however it says construction workers are prepared to look at pay related costs in a creative way but will not accept a "slash and burn approach" to solving problems in the industry.
This argument is sure to run and we will follow this issue closely in the coming days and weeks
