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SME builders and Unite the union agree 3.1% pay rise over the next year

The Building and Allied Trades Joint Industrial Council (BATJIC) has agreed a one year deal involving a 3.1% pay rise to come into effect in June 2018. This follows from the successful conclusion of pay negotiations between the Federation of Master Builders (FMB), on behalf of SME construction employers, and Unite the union, on behalf of operatives, the FMB has said.

  • BATJIC has agreed a one year deal involving a 3.1% pay rise over the next year
  • All apprentices and trainees will also benefit from a 3.1% pay increase
  • The adult general operatives’ rate increases by 29p per hour to £9.52
  • The NVQ3 advanced craft rate increases by 37p per hour to £12.45
  • The changes will come into effect as of Monday 25th June 2018

Brian Berry, Chief Executive of the FMB, said “I am pleased that we were able to reach this agreement. A 3.1% pay increase is a significant rise, but it is designed to take into account higher inflation last year and make sure that employees continue to see the benefits of ongoing growth in construction through rises in real wages. The severity of the skills crisis means that it is imperative that we attract more people into the industry. It’s also more important than ever that we retain existing workers. At the same time, the economic outlook for employers remains uncertain, especially given key unknowns like the impact of Brexit. As such, I believe the agreement announced today strikes a fair balance which is right for the industry.”

Jerry Swain, the National Officer for Construction at Unite the union, added “Unite welcomes this agreement which recognises the impact of inflation and includes a 3.1% pay rise over the next year. It is only right that workers see the benefits of growth in the construction sector with this significant pay rise which demonstrates the importance of a strong collective union voice for construction workers. We welcome the FMB’s ongoing commitment to BATJIC which continues to set the standard for wages and conditions within the construction SME sector and look forward to ensuring the sector continues to go from strength to strength.”

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Construction workers threaten strike at Hinkley Point as pay offer rejected

Construction workers employed at Hinkley Point have overwhelmingly rejected a pay offer in the longstanding dispute over pay and bonuses on the project.

The unions concerned, Unite and the GMB, will now go ahead with notifying the companies concerned of their intention of holding an industrial action ballot and then progress to ballot members for strike action.

The workers overwhelmingly rejected the proposed pay increase, with over 95 per cent voting against the proposals in a consultative ballot. Members were told that the rejected offer was the best that could be achieved “through negotiations”.

The dispute, which has been ongoing since the spring, concerns the pay of workers engaged on civil engineering contracts at Hinkley Point which is the largest construction project in Europe. There are already over a 1,000 workers employed on these contracts at Hinkley Point.

Negotiations on the pay offer have involved the client EDF and the main contractor BYLOR (the principal contractor Laing O’Rourke and Bouygues TP) as well as the unions.

A ballot for strike action was called off in June after an interim agreement on bonus payments was agreed. The three month agreement was extended into September in the hope that a permanent deal could be made.

One of the principal issues is that the pay rates for workers on civil engineering contracts are significantly below the rates of workers covered by the mechanical and engineering (M&E) contract.

Unite national officer for construction Jerry Swain said “Members have made their views clear; the unions warned the amount of money being offered was not sufficient and this has proved to be the case.

“The client and contractors need to understand that this is a high profile, complex project, built in a tightly controlled secure zone, which is being built in an isolated part of the UK. It cannot and will not be built on the cheap.

“For too long the construction industry has treated workers on civil engineering projects as the poor relations and these attitudes are no longer acceptable. The employers have set the benchmark with the mechanical and engineering agreement they need to come forward with an offer that meets our members’ expectations.

“There is a window between now and the commencement of any industrial action to still resolve this dispute, provided the client and the contractors come back with an improved offer. The unions are fully prepared to return to the negotiating table if an improved offer is put forward.”

Phil Whitehurst, GMB national officer for construction, said “The ballot result is a clear indication that the national officers of both GMB and Unite have to get back round the table with EDF as matter of urgency.

“We will be seeking meetings with EDF as soon as possible to solve this situation on behalf of our members.”

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