Workers at smaller construction companies are set for a 5% pay rise over two years after a new agreement was struck with the Building and Allied Trades Joint Industrial Council (BATJIC).
The increase follows negotiations between the Federation of Master Builders, on behalf of SME construction employers, and union Unite, on behalf of operatives. Under the terms of the deal, workers will receive a 2.5% pay rise this year and a further 2.5% increase in 2017.
The rise will be across the board, with the exception of hourly rates for lower paid general operatives, who will get a bigger boost of 4% this year, followed by 2.5% next year.
In order to provide employees with a greater degree of security, the agreement includes a commitment that the 2017 rise will be inflation-proofed – if inflation in early 2017 is higher than 2.5%, then the 2017 pay rise will match this, up to a limit of 3%.
Brian Berry, FMB chief executive said: “I am pleased we were able to reach this agreement. This is a good deal which provides certainty and reassurance to employers and employees alike.
“It strikes the right balance between on the one hand recognising the importance of boosting pay in line with solid growth and positive future expectations, and on the other hand accepting that margins continue to be tight and the economic outlook continues to be clouded by a number of uncertainties.”
John Allott, Unite’s national construction officer, said: “We welcome this pay increase and the FMB’s commitment to the BATJIC agreement. The higher increase to the lowest paid was needed, as many operatives living standards took a knock during the economic downturn.
“The inflation-proofing of the second year’s rise provides some further reassurance that living standards will receive protection against a jump in inflation.”
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