Unions reject bonus deal

Pay talks between employers and unions representing 600,000 construction workers have broken down over the insertion of a controversial bonus clawback clause into the agreement by employers.

George Henderson of the T&GWU warned: "Building workers are very angry and there is likely to be a long hot summer ahead."

No further talks are planned between the two sides.

The unions were demanding a deal reflecting the upturn in the industry but employers insisted on a four-year deal with a clawback provision on bonuses for the third year.

A spokesman for the T&GWU said: "What the employers are demanding has no relation to the industry where there has been an upturn in business and skill shortages exist."

The proposed agreement would have seen labourers' wages rising from œ147.81 to œ177.45 in 1999 and craft rates going from œ178.62 to œ235.95 over the same period.

In the third year the clawback clause would have been assessed on workers accumulated bonuses.

The employers are insisting that the rises will have to be reduced if the clawback is not accepted.

Malcolm Fordy, the chairman of the Building and Civil Engineering Joint Negotiating Committee, described the proposals put forward by the employers as "a wide ranging, positive and constructive response to the construction unions."

Fordy said: "To our very great regret the trade union side rejected our offer.

"I must make it clear that no further concessions will be made by the employers," he warned.