Construction's long-term pay deal set to implode

Construction's long-term pay deal is set to become the latest victim of the recession.

The current three-year Working Rule Agreement runs out in June. But both the unions and employers believe a short-term 12-month deal will have to be agreed on as workers face the prospect of a pay freeze.

Talks between both sides are on hold after Ucatt withdrew from negotiations last month amid calls for the installation of anti-blacklisting clauses in any agreement.

Construction Confederation industrial relations director Gerry Lean said: "The longer-term deals were introduced in 1997 but historically we have always had one-year deals, including 1993 when there was the last pay freeze.

"We were due to talk last month but the union side cried-off. I have no idea what any offer will be because we haven't had a chance to sit down with them yet and discuss things."

One Ucatt source said: "It looks like we are facing a zero offer unless there is any sign of a recovery once the talks finally get underway, but that doesn't seem very likely. If that happens it will have to be a 12-month deal.

"In reality, rates are dropping on site and the gap between real pay rates and the Working Rule Agreement minimums are narrowing."

Hopes of any form of pay rise for workers were hit again last week when small and medium-sized builders covered by the Building and Allied Trades Joint Industrial Council (BATJIC) agreement imposed a pay freeze.

Richard Diment, director-general of the FMB, said: "It has become clear that conditions are not going to improve sufficiently for any form of increase to be possible for this year, and there is clearly a need to provide certainty on wages for firms pricing for what little work there is out there."

Bob Blackman, national secretary for construction at Unite, said: "We are hoping that conditions improve sufficiently for agreement to be reached next year for the 2010/11 pay round"

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