Construction unions resist 20% pay-cut proposal

The Construction Industry Federation (CIF) said today that it is disappointed at the response of construction unions to their attempt to reduce wages in the sector.

Unions representing construction workers say they will resist attempts by the CIF to cut workers' pay by 20%.

The CIF said that it is looking for the reduction to address what it claims are "unreasonable wage levels".

"We want to reduce costs to address the black economy," said the CIF's director of industrial relations, employment and manpower services Eddie Keenan.

"Our idea is to reduce costs so we can encourage investment and create employment in the industry.

"We’re asking for a 20% reduction in costs. We think that's what needed in order to address the whole issue of the black economy."

However, Fergus Whelan, industrial relations officer with the Irish Congress of Trade Unions, said that Mr Keenan's proposal does not make sense.

"As I said to them in there, it escapes me how you tackle the black economy by slashing the wages of hard-working, tax-compliant workers," he said.

"I just don't understand how that works. And they weren't able to explain that to me either."