Credit crunch hits CIJC pay deal talks

Hopes of reaching an early settlement on construction's main pay deal have been dashed by the financial crisis.

Unions tabled a formal 2009 pay claim at the latest meeting of the Construction Industry Joint Council. It is worded in general terms - seeking a "substantial" increase in rates, plus shorter hours and extra holiday entitlement.

The current three-year settlement is renewable from the end of next June.

Earlier this year it was hoped to clinch a deal by Christmas. But an employer spokesman said: "The change in the economic climate has clouded the horizon and made talks much more difficult."