Court ratifies 7.5% cut in construction pay

THE Labour Court has formally ratified the 7.5% cut in the minimum pay rates in the construction industry, a move which experts say could lead to savings of €300 million to €400m.

The rates of pay, as well as terms and conditions in the construction industry, are set by a Registered Employment Agreement (REA).

The construction sector has been decimated by the impact of the recession with activity shrinking to a fraction of its high in 2007. In tandem the numbers employed have dropped by as much as 100,000.