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Employers and workers agree 2.75% pay rise in construction

A 2.75% pay rise for construction workers has been agreed for the year ahead following successful pay negotiations between the Federation of Master Builders (FMB) and Unite the union.

The Building and Allied Trades Joint Industrial Council (BATJIC) has agreed a one-year deal involving a 2.75% pay rise to come into effect in June 2019. This follows the successful conclusion of pay negotiations between the FMB, on behalf of SME construction employers, and Unite the Union, on behalf of operatives. BATJIC has also secured tax dispensation from HM Revenue and Customs for Lodging Allowance and Daily Fares Allowance for this year’s Working Rule Agreement after several years’ hiatus. The key information is as follows:

  • BATJIC has agreed a one-year deal involving a 2.75% pay rise over the next year
  • All apprentices and trainees will also benefit from a 2.75% pay increase
  • The adult general operatives’ rate increases by 26p per hour to £9.78
  • The NVQ3 advanced craft rate increases by 34p per hour to £12.79
  • The changes will come into effect as of Monday 24th June 2019

Brian Berry, Chief Executive of the FMB, said “This agreement strikes the right balance as it recognises the hard work that employees are putting into their work but at the same time, it reflects the uncertainty that many construction firms are facing. This increase is above last year’s rate of inflation, according to all three of the leading indexes, and sends out a strong message to tradespeople that we value them and want to retain them. It’s no secret that economic forecasts are quite conservative for the years ahead, given the unknown impact of Brexit, but I feel this is a good compromise from the perspective of both employers and workers.”

Jerry Swain, the National Officer for Construction at Unite the Union added “Unite welcomes this agreement which recognises inflation levels from last year and the high employment levels that we have at present. With construction skills shortages impacting on the industry, a 2.75 per cent pay rise will help encourage tradespeople to remain in the industry at a time when the current political uncertainty and drops in construction output are affecting confidence in the industry. I’m pleased that BATJIC has been further strengthened this year by successfully jointly lobbying for tax dispensation on key employee expenses. It was important that we secured the dispensation from HMRC in respect of lodge payments, as this now formalises the position regarding taxation of lodge payments. The dispensation gives peace of mind to our members and ensures that they will not face any claims for retrospective payment of tax when receiving lodge payments while working away from home.”

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Construction workers set for wage boost as new pay deal agreed

Construction workers operating under the Construction Industry Joint Council (CIJC) agreement are set for a boost in pay and allowances next month after a new two year pay deal worth 6.2 per cent was recently agreed.

The CIJC is the largest agreement in the construction industry and principally covers workers operating in civil engineering and the so-called biblical trades (carpenters, bricklayers and painters).

3.2 per cent increase this year

The agreement signed by Unite and the GMB will see pay rates increase by an inflation beating 3.2 per cent from Monday 25 June. The pay increase will mean that the minimum rate for craft workers (including carpenters, bricklayers and painters) is £12.31 an hour, with the general operative (labourer) minimum rate increasing to £9.26 an hour. Pay rates will increase by a further 2.9 per cent from Monday 24 June 2019.

The travel allowance will increase in line with the percentage rise in pay rates, the (tax free) fare allowance will increase in line with inflation however lodging allowances will increase by nearly eight (7.8) per cent to £40 a night in 2018 and will then increase by inflation in 2019, which is in line with other construction agreements.

Industry sick pay extended

Industry sick pay is to be increased and extended. It will rise to £130 per week (paid in addition to statutory sick pay) an increase of 6.1 per cent and it will now be paid for 13 weeks, an increase on the 10 weeks it is currently paid for.

The industry death benefit, paid via the B&CE, will increase from £32,000 to £40,000. If a worker is killed at work or travelling to and from work their family receives double that amount.

There has also been a significant increase of 6.5 per cent in the payment for first year apprentices who will receive £5.50 an hour, it is hoped that the increased rate will attract a greater number of new entrants into the industry.

Strong step in right direction

Unite national officer for construction Jerry Swain said “This deal is a strong step in the right direction and will give construction workers a well-deserved pay increase.

“The increases in allowances and other benefits, underline the value of working under an industrial agreement and being part of collective bargaining arrangements.

“Over the next two years we will be working to further strengthen the agreement and ensure that it is brought into line with other agreements in all matters and is seen as relevant on major construction sites.

“Construction workers need to remain vigilant that employers actually pay the agreed pay rates. Too often in construction employers try to boost their profits by failing to pay agreed increases.”

GMB national officer Ross Murdoch added “Given the current climate in the wider construction industry and overall economic climate, this deal is both a recognition of a hard-working, highly-skilled workforce and a demonstration of real commitment to maintaining meaningful joint national industrial agreement.”

“As further significant construction projects emerge over the next few years, this deal offers genuine hope of retaining the much needed skills for the industry, as well as attracting new apprentices, with the percentage uplift for apprentice rates further reinforcing the importance of this latter point.”

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