Going up. Above inflation pay rise and benefits in construction are intended to offset the loss of overseas labour as a result of Brexit.
Basic pay rates in construction increase by 3.2% today (25 June) with a further 2.9% increase in June 2019. The rates have been set under the Construction Industry Joint Council Working Rule Agreement negotiated between employers and the Unite and GMB unions.
This is the first time a two year pay and conditions settlement has been reached. Around 200,000 construction workers across the UK are affected by the Agreement.
Other benefits included in the Agreement have also increased:
- Industry Sick Pay (ISP) will increase by 6.1% and the duration of payment extended from 10 to 13 weeks
- The nightly lodging allowance will increase by 7.8% to £40.00 per night
- Starting pay for apprentices will increase by 7% to £5.50 per hour
- Later in the year the death in service benefit will increase from £32,500 to £40,000, doubled to £80,000 if death occurs either at work or travelling to or from work.
Gerry Lean, representing the employers, says: “These negotiations have been conducted in a spirt of good will and co-operation, demonstrating the excellent relationship between employers and unions. This deal gives operatives an above inflation pay rise with the certainty of another increase next year and significant improvements in fringe benefits."
The point of a two year agreement is that It gives employers some measure of stability amid thge uncertainty of Brexit.
Employers and Unions are now undertaking a major review of the Collective Agreement with a view to attracting a more diverse workforce and giving a greater focus on apprentices to try to maintain a flow of workers into the industry.