GIF claims construction tender prices fell 30%, but wages only 5%

THE Construction Industry Federation (CIF) will has submitted a claim to the Labour Court seeking a reduction in registered employment agreement (REA). The CIF argue that while construction tender prices in the industry have dropped by 30% on average since the downturn began, wage rates have only been reduced by 5%. In their submission to the Labour Court, the CIF are requesting: A 20% reduction in the rates of pay to construction workers. The introduction of a new entry grade (Grade E) at the statutory minimum wage with an increase of 5% per annum for four years before moving to Grade D and the current wage scale. Overtime to apply to individuals after completion of nine hours per day Monday to Thursday and eight hours on Friday when required. Currently workers are paid overtime after eight hours Monday to Thursday and after seven hours on a Friday. Time and a half to apply until 4pm on a Saturday; at the moment the time and half overtime rate only applies to 1 pm on a Saturday. Starting time to commence at 7am with discretion of the employer when
work actually starts, there is currently no set starting time in the REA. Crane drivers who normally start before the other workers will commence work a maximum of two hours before others with overtime of time and a half to commence after nine hours Monday to Thursday and eight hours on a Friday. Currently crane workers will receive double time payments for any work they undertake before other workers commence. Travelling allowance to be paid only after 10 miles with a maximum payment of one hour per day to apply thereafter. Currently all travel is paid the travelling allowance. Employees must work at least eight hours to qualify for travel allowance. Country money to move in line with the Consumer Price Index (CPI). Country money is a payment of 1 81 per week made to all those who have to reside away from home for work. Currently the REA only allows for this payment to increase but does not allow for it to go down during deflationary times. Speaking ahead of the Labour Court hearing, CIF Director General Tom Parlon said: "Everyone knows that the construction sector is suffering badly with the level of activity dropping dramatically since the downturn began.

There is simply a very limited pool of work available to construction companies. Employment numbers in the industry have dropped as a result, recently falling below 1 00,000 from a high of 270,000 in 2007. "The simple fact is that average tender prices have fallen by 30% since the downturn while construction wages have only diminished by 5%. Construction companies who are looking to honour the wage agreement are being priced out of the contracts. They can't compete with black economy operations who do not pay attention to the REA. "That is why we are asking the Labour Court to review the current REA and reduce^the level of wages being paid. The level of employment in the construction sector seems to be on a downward spiral but that process can be slowed down if the wage rates are

reduced.

"Unfortunately if the current wage levels

will lose their jobs. Companies who are not able to competitively price their tenders because of the current wage rates will not win work," he concluded.

remain then more construction workers