Saturday 27 November 2021
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Minister English approves Labour Court recommendation for new minimum pay rates in the Construction Sector

Minister English approves Labour Court recommendation for new minimum pay rates in the Construction Sector

The Minister of State for Business, Employment and Retail Damien English TD, has formally approved a recommendation from the Labour Court for new minimum pay rates to workers in the construction sector.

Minister English said “The Sectoral Employment process is a statutory wage setting mechanism based on the principles of collective bargaining. It provides an independent assessment of pay rates that considers the views of all interested parties with a view of ensuring industrial harmony and competitiveness.

“My role, as the Minister, is to ensure that the Labour Court’s recommendation has complied with the statutory provisions of Chapter 3 of Part 2 of the Industrial Relations Act 2015. I have carefully considered the statutory report that was submitted to me alongside the recommendation, and, on this basis, I have formally accept the Labour Court’s recommendation.”

The Minister added “These measures are an important step in securing stability and growth in this crucial sector of the Irish economy. This Order will protect the working conditions of workers in the construction sector; will underpin continued good relations between workers and employers in the sector; and will help maintain the attractiveness of this sector as a viable career option.”

The recommendation is the third such recommendation from the Labour Court in the construction sector. The recommendation, if approved by both Houses of the Oireachtas, will take effect by means of a Sectoral Employment Order (SEO). The Order will amend SI 234 of 2019.

As required, the Minister will now proceed to have the draft Order considered in both Houses of the Oireachtas over the coming weeks.

Additional Information:

The Labour Court recommendation follows on from an application by the BATU, Connect, OPATSI, SIPTU and UNITE to the Court to review the terms and conditions of workers in the Construction Sector. The application was made in accordance with Section 14 of the Industrial Relations (Amendment) Act 2015.

Following completion of its review of the application, and in line with Section 15 of the Act, the Labour Court submitted its recommendations under Section 16 of the Act to the Minister within the statutory deadlines, recommending the following minimum rates of pay:

Pay Rates

The following basic hourly rates of pay will apply in the sector from 1 February 2022 to 31 January 2023.

Basic Hourly Rates of Pay from 1 February 2022 to 31 January 2023

Craftsperson €20.52 per hour
Category A Worker €19.91 per hour
Category B Worker €18.47 per hour
Apprentice – Year 1 33.33% of Craft Rate
Apprentice – Year 2 50% of Craft Rate
Apprentice – Year 3 75% of Craft Rate
Apprentice – Year 4 90% of Craft Rate

An hourly rate of pay of €14.93 will apply for two years after entrance to the Sector to all New Entrant Operative Workers who are over the age of 18 years and entering the sector for the first time.

The following basic hourly rates of pay will apply in the sector from 1 February 2023.

Basic Hourly Rates of Pay from 1 February 2023
Craftsperson €21.09 per hour
Category A Worker €20.47 per hour
Category B Worker €18.99 per hour
Apprentice – Year 1 33.33% of Craft Rate
Apprentice – Year 2 50% of Craft Rate
Apprentice – Year 3 75% of Craft Rate
Apprentice – Year 4 90% of Craft Rate

An hourly rate of pay of €15.35 will apply for two years after entrance to the Sector to all New Entrant Operative Workers who are over the age of 18 years and entering the sector for the first time

Pension Contribution

Pension Contribution from 1 February 2022

Employer daily rate – €5.73 (weekly – €28.65)

Employee daily rate – €3.82 (weekly €19.10)

Total contribution daily into the scheme per worker – €9.55 (weekly €47.75)

Pension Contribution from 1 February 2023

Employer daily rate – €5.84 (weekly – €29.22)

Employee daily rate – €3.90 (weekly €19.50)

Total contribution daily into the scheme per worker – €9.74 (weekly €48.70)

Sick Pay Scheme

Every employer employing workers to whom the Order applies must have in place a sick pay scheme for each employee covered in the Order. Weekly contributions to a scheme are as follows:

Employer – €1.27

Employee – €0.63

Total – €1.90