Construction unions agree inflation-busting pay rises

Construction unions are crowing over tumbling inflation rates after locking in pay rises for next year.

The engineering construction sector has a 5.5% increase agreed for January 2009. The same month will also see increases of 5% for plumbers and 4.5% for electricians.

In Northern Ireland, the building and civil engineering industry has already agreed a 6% increase in basic rates from August 2009.

Tom Hardacre, national secretary of Unite, said: “Given economic forecasters predict a zero or even negative rate of inflation some time next year, the engineering construction and electrical contracting increases look fantastic.”

An employers’ spokesman conceded that the British building sector’s 6% increase last summer had itself been regarded as “eye-watering” by some contractors at a time when inflation was running at around 5%.