CIF wants pay cuts of up to 30%

THE Construction Industry Federation has referred a claim for a 20%-30% cut in labour costs to the Labour Court after talks with unions failed to yield agreement.

A CIF spokesman said that as well as seeking a 20% reduction in wage rates across the board, it is also looking for other labour cost savings on issues contained within the industry’s Registered Employment Agreement (REA) for the industry, such as travel times and rates for overtime.

“The REA, as people know, guarantees rates of pay far in excess of those applying in most other sectors of the economy,” a CIF spokesman said.

The CIF has been looking for a significant reduction in pay rates within the industry since 2008. At that time, the national wage agreement negotiated between unions and employers, including the CIF, provided for 6% pay increases over 21 months. The CIF rejected that and instead pushed for a 10% pay cut.

There has been a much publicised decline in the construction industry since then.

“Construction activity is one-third of what is was two years ago; over 200,000 jobs have been lost; tender prices are down over 30% and companies are tendering below cost; and house prices are down over 40% in parts of the country,” the spokesman said.

“Notwithstanding this, and notwithstanding the readjustments that have taken place in every other sector of the economy, there have been no wage or labour cost reductions in the construction industry under the REA.

“The CIF has engaged with the unions since towards the end of last year and we’re now, under the normal industrial machinery of the state, referring our claim to the Labour Court.”

The spokesman pointed out that even within its own organisation, the CIF has implemented a significant cost cutting programme that has included wages and other labour costs at every level of the organisation. Unfortunately, the organisation also had to introduce a redundancy programme towards the end of 2009.”

However, the spokesman would not say if CIF director general Tom Parlon had taken a pay cut.

Any ruling the Labour Court makes on the claim would not be binding and so could be ignored by the worker or employer side.

Meanwhile, a Fair Hotels campaign to support and promote quality jobs in the hotel industry will be launched in the Liberty Hall Theatre today. The campaign is based on the principle that hotels that treat staff fairly should be supported by consumers who care about workers rights.

The SIPTU-led campaign introduces a new ethical choice for consumers via the website www.fairhotels.ie. Already 45 hotels in which workers have collective bargaining rights have signed up to the campaign, which will encourage trade unions and their members to use fair hotels for family holidays and breaks, conferences and meetings.