Turmoil is likely over holiday pay

by John d'Arcy



Contractors are facing potential major unrest over holiday pay arrangements during the Christmas and New Year period following conflicting legal advice regarding the application of the new Working Time Regulations.

Contracts in the firing line include the Jubilee Line Extension and the Covent Garden Opera House.

The issue is being caused by a row over comparability between various trades. Building and civil engineering workers look forward to Christmas holiday pay at the level of average earnings, while electricians and heating and ventilating workers are set to be paid only the existing nationally agreed minimum rates.

Building and civil engineering employers with the Construction Confederation have already agreed that, in order to comply with the new regulations, their operatives should receive a top-up payment for eight of the 10 days of the Christmas and New Year holiday. This will take the basic holiday pay for those covered by the B&CE benefit scheme up to average earnings accrued during the preceding 12 weeks for those eight days.

Both electrical and heating and ventilating contractors, however, are understood to have received legal advice that they need pay only the basic holiday rates available under their own benefit schemes this Christmas. Top-up pay will be available for electricians and H&V operatives later on - at Easter and over the summer holidays.

One electrical contractor commented: "Legal advice has been taken. Our operatives will not lose out on their legal entitlement to holiday pay based on average earnings as required by the regulations. But they will get it later rather than sooner."

AEEU official Frank Westerman commented: "Our legal advice is to the contrary. We believe electricians should be getting average holiday pay over the Christmas period." He said different holiday pay arrangements for different trades was a recipe for site unrest.

The holiday pay issue featured high on the agenda of a meeting on Monday of the forum established to improve industrial relations on the JLE contract.

Leaders of the AEEU and the Electrical Contractors Association were also expected this week to meet Ian McCartney, Minister of State at the Department of Trade and Industry, to discuss problems arising from the regulations. These include a perceived threat to the future of the electrical Joint Industry Board and the range of benefits it offers aside from transferable holiday pay.

If no compromise is reached, some electricians are threatening to flood Employment Tribunal courts with cases.