Construction workers covered by the Construction industry Joint Council (CIJC) agreement are set for an inflation-busting pay rise after an agreement was reached between employers and unions GMB, UCATT and Unite.
Pay rates will increase by 2.5% from 25 July 2016 and then by a further 2.75% in June 2017. Industry sick pay and subsistence allowance will also increase at least in line with the basic pay rate increases.
Workers will receive an extra day’s holiday from 1 January 2017 which is worth an additional 0.4%. The taking of holidays has also been made more flexible. Travel allowances have been reconfigured and will now be calculated in miles rather than kilometres.
A number of skilled operative rates, including slinger/signaller, banksman, fork lift truck and telehandler drivers, have received pay increases above the basic award.
The settlement covers 400,000 workers making it the largest in the industry.
However, unions have said the agreement is increasingly unfit for purpose, citing areas of concern such as rates of pay, the failure to recognise the London Living Wage, and the lack of a mechanism to ensure the agreement applies to company supply chains.
Brian Rye, acting general secretary of UCATT, said: “This deal ensures that workers will enjoy above-inflation increase for the next two years. However, employers need to understand that the CIJC agreement does not meet the needs of the workforce and unless it is radically reformed it will soon cease to be relevant to the industry.”
Unite national officer for construction John Allott added: “While we welcome this improved pay deal, it must act as a firm foundation for moving the agreement forward. The employers need to recognise that the deal is not an end in itself, but the beginning of the journey to address many of the problems that currently face our members in construction.
“The CIJC agreement urgently needs to be revamped for the modern workplace – and the unions want to work constructively with employers to achieve this goal.”