Construction union rejects 7.5% cut in minimum wage

THE executive of the country’s second largest construction union has unanimously rejected a recommendation by the Labour Court that the minimum wage in the industry be dropped by 7.5%.

At the start of July, the court ruled the legally binding rates which are set under a Registered Employment Agreement (REA) for the sector should be cut by 7.5% and the reduction would also apply to pay-related allowances.

However, it made it clear that the cuts should be seen as a temporary derogation from the REA governing the sector and it should be reviewed in January 2012 and in each subsequent year.