Workers get 23% pay rise

Contractors and employers representatives have agreed a 23% pay rise over three years for more than 600,000 building workers.

The Construction Industry Joint Council has agreed the deal after two months of discussions. The agreement covers pay and pensions contributions, as well as travel and subsistence allowances for skilled craft workers and general operatives.

Over the period of the deal, basic craft rates will go up from £7.30 an hour to £9 an hour, and general operatives' basic rates from £6.95 to £7.83 in stages of 5.07% in the first year, 7.17% in the second year and 9.49% in the final year.

Pension contributions from the employer into stakeholder schemes will rise from £1.90 to £2.50, with employers agreeing to match-fund voluntary employee contributions up to £10 a week.

The daily subsistence paid has gone up to £25 from just over £22 and will track with inflation over the next three years. Fares and travel allowances will also keep pace with inflation.

Death benefits will rise from £15,000 to £20,000. If a worker is killed at work the payment rises to £40,000

TGWU national secretary for construction Bob Blackman said: "This deal is good news for the workers and good news for the industry. The industry has recognised that its number one asset, its workforce, must be looked after."