Minister for State at the Department of Enterprise and Employment Emer Higgins says she expects to be able to formally approve a Sectoral Employment Order providing for pay increases for almost 50,000 workers in the construction sector before the end of the week.
The pay deal recommended by the Labour Court provides for increases of 6.6 per cent over two years to about 46,600 workers but is required to be formally approved by the Dáil and Joint Oireachtas Committee for Enterprise and Employment before the Minister can sign it into effect.
“I need both the committee and the Dáil to note what the court has recommended and I expect that all to happen,” said Ms Higgins on Tuesday. “Assuming that all happens as expected then I will be in a position to sign the order on Thursday.”
The SEO will impact both craft and general workers employed across the sector and provides for increases of 3.4 per cent in August of next year and 3.2 per cent in August of 2026.
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During the talks, the union side is reported to have sought increases of about 6 per cent in each of the two years to be covered by the deal while industry representatives are said to have offered about 2 per cent per annum.
In the deal recommended, the minimum standard hourly rates for workers in the sector would increase from €20.03 to €20.71 next year while minimum rates for craft workers would rise from €22.24 to €23.00. Lower rates for new entrants and apprentices would still apply.
Pension and sick pay contributions are also to be increased.
[ Sharp drop in productivity across Irish construction and accommodationOpens in new window ]
The implementation of the deal had been threatened by the imminent general election, with unions concerned in recent weeks that it might not get the required approvals.
The Connect trade union, meanwhile, is to ballot about 4,500 of its members, mainly plumbers and pipe fitters, on a deal for the mechanical sector which was agreed at the Workplace Relations Commission last week.
The terms are similar to those contained in the SEO, with an increase of 3.4 per cent due to be implemented on May 1st, 2025, and a further 3.2 per cent on May 1st, 2026.
The deal also includes a provision for a new higher rate for those with 10 years’ post-apprentice experience of €28.10 per hour, to come into effect from January 1st of next year.
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