Apparently, homebuyers will be the ones to pay the price if construction workers get the opportunity for a pay rise.
Developers have warned that pay increases for construction workers will have an upon people’s ability to buy their own house. Not only that, but it will also reduce national competitiveness too.
According to the Construction Industry Federation, a singular pay rise of 10% could result in 8,000 fewer jobs being created in the industry annually. For the next five years!
This warning was issued after it was made known that trade unions representing construction workers in Ireland were set to seek a 10% pay rise. The Times reported : “as a result of a Supreme Court decision in May 2013, all registered employment agreements that governed a number of sectors, including construction, ceased to have a statutory effect.”
“The government subsequently passed the Industrial Relations (Amendment) Act 2015, which provides for SEOs as a replacement for the former system.”
“Under the legislation, the Labour Court can recommend to the jobs minister that an order be made setting out minimum pay rates.”
“Both the CIF and trade unions favour some kind of new agreement but differ over the basic pay rate.”
“The CIF has proposed that €17.21 an hour should be the rate for craftspeople. But it opposes travel allowances for construction workers.”
“The Irish Congress of Trade Unions (ICTU) says the rate should be €18.96 for craftspeople and travel expenses must be included as part of any agreement.”
“Unions claim that this figure constitutes the restoration of a 7.5 percent cut in pay introduced in February 2011 combined with a 2.5 percent increase.”
However, the Construction Industry Federation warned that increases in pay levels, by just 10%, would result in fewer jobs being created within the industry. Specifically, between 2017 and 2021, 8,197 fewer jobs would be created yearly. This would amount to 15% of employment levels within construction.
However, the Construction Industry Federation did state that they believed there would not be job losses.
The Times continued with their report. “It supports the principle of a new agreement on pay, pensions and sick pay saying that it would provide stability and certainty for contractors when tendering for work and ensure “a level playing field with regard to labour costs”.”
“It claimed that an agreement would also promote harmonious relations between employers and their staff in what is a labour-intensive industry.”
The Construction Industry Federation added: “the absence of a sectoral employment order will lead to increased competition at home and abroad, low pay, poor quality and unsecure work, less direct employment, substantially reduced investment in training, difficulties in tendering, an unstable industrial relations environment, and further gaps in wage rates that do not match economic reality.”
With pay the most important factor according to recent research, what do you lot think of this? Let us know in the comments below.