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Wages expected to rise for construction sector

The Building and Allied Trades Joint Industrial Council (BATJIC) has agreed a two year pay deal following the conclusion of negotiations between the Federation of Master Builders (FMB) and Unite the Union.

The deal involves variable wage rises for the standard wage rates averaging 2.5 per cent, to come into effect from 30 June 2014, with a further set of rises averaging 3 per cent to come into effect from 29 June 2015.

In addition, it has been agreed that the annual holiday entitlement will increase by one day, as of 29 June 2015, from 21 days to 22 days, making a total of 30 days including public holidays.

In recognition of the industry’s need to attract and retain young talent, young adult operatives and all apprentices and trainees will benefit from a 3 per cent rise in hourly wages as of 30 June 2014, followed by a further 3 per cent rise in June 2015. Hourly skills rates, as set by Working Rule 1C, will also rise by 3 per cent for each year of the deal. 

FMB chief executive Brian Berry said: “This deal reflects the cautious optimism and the desire for long term stability now present in the industry. The construction sector is finally seeing consistent growth for the first time in five years. Yet, this growth is from a very low base and remains relatively constrained for many of our members.”

Mr Berry added: “The FMB’s latest State of Trade Survey showed growth in workloads and new enquiries slowed during the last three months of 2013, output in domestic repair and maintenance sector, in which the majority of FMB members work, fell during 2013 and we are still seeing upward pressure on output prices driven by rising materials costs.”

Mr Berry concluded: “However, our members are now looking to the future with expectations of growing workloads. Therefore, it is right that, after some difficult years, this agreement recognises this with a significant pay increase for hard-working employees. The two year nature of the deal will provide certainty and reassurance for employers and employees alike.”

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