Pay review set to rise to 18.2%


by John d'Arcy



Agreement on a new long-term building and civil engineering pay settlement now looks to be on the cards by the end of this month. This follows the latest round of talks at which the employers increased their offer from 15.7% to 18.2% on basic rates over the next three years.

As anticipated, the contractors have tabled a revised package which includes an improved increase in the first year.

Construction Confederation employers are now proposing a 3.3% rise in basic rates this year, followed by 6.1% next year and 7.9% in 2002. They claim that improved holiday pay this year will be worth another 2%.

Negotiations are scheduled to resume immediately after Whitsun. Confederation manpower director Gerry Lean commented: "We are making good progress. There are some matters that still need resolving. But we are hopeful of securing another three-year deal. This is a pretty significant package."
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Lean said the employers were hopeful of securing an agreement which allows four weeks' notice before an implementation date of 26 June.

George Brumwell, general secretary of UCATT, said: "We are still open-minded about a three-year settlement. We are a little concerned that the employers are not addressing the spirit of the Egan report by raising basic pay to a realistic level. We are talking about increases from a low base.

"Sick pay remains a sticking point. There is a glimmer of encouragement on pensions. But talks on this issue will continue outside the pay negotiations. There is also a strong commitment on clawback and a statement on recognition of the three signatory unions.

"The talks haven't broken down. The lettuce is on the table. Now we want to get to the beef."

Alan Black, national secretary of the GMB, added: "The real problem remains the offer of only 3.3% in the first year." He said sick pay provisions were "derisory". The unions were further concerned at moves by the contractors to secure derogation from the Working Time Regulations to meet the needs of night working for the utilities.


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