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INDUSTRY NEWS


2.75% pay rise agreed for construction workers


Industrial Council (BATJIC) has agreed a one-year deal involving a 2.75% pay rise to come into eff ect in June 2019. This follows the successful conclusion of pay negotiations between the FMB, on behalf of SME construction employers, and Unite the Union, on behalf of operatives. BATJIC has also secured tax dispensation from HM Revenue and Customs for Lodging Allowance and Daily Fares Allowance for this year’s Working Rule Agreement after several years’ hiatus.


A PAY rise of 2.75% for construction workers has been agreed for the year ahead following successful pay negotiations between the Federation of Master Builders (FMB) and Unite the union.


The Building and Allied Trades Joint Jerry Swain, the National Offi cer


for Construction at Unite the union, said: “Unite welcomes this agreement which recognises infl ation levels from last year and the high employment levels that we have at present. With construction skills shortages impacting on the industry, a 2.75% pay rise will help encourage


tradespeople to remain in the industry at a time when the current political uncertainty and drops in construction output are aff ecting confi dence in the industry.”


Key Agreement Information:


• BATJIC has agreed a one-year deal involving a 2.75% pay rise over the next year;


• All apprentices and trainees will also benefi t from a 2.75% pay increase;


• The adult general operatives’ rate increases by 26p per hour to £9.78;


• The NVQ3 advanced craft rate increases by 34p per hour to £12.79;


• The changes will come into eff ect as of Monday 24th June 2019.


Workloads for small builders dip for the fi rst time in six years, warns FMB


WORKLOADS for small and medium- sized (SME) construction fi rms have taken a dip for the fi rst time in six years, according to the latest research from the Federation of Master Builders (FMB).


The FMB’s State of Trade Survey for Q1 2019 shows that the array of problems for small, local builders have taken their toll and have now put the sector in negative territory.


Brian Berry, Chief Executive of the FMB, said: “This dip follows three years of political uncertainty, which have taken their toll on the SME construction sector. A perfect storm of diminished consumer confi dence, rising material prices and increases in wages and salaries has resulted in the construction SME sector detracting for the fi rst time in six years. Consumers and businesses alike are understandably putting off large investment decisions while the


never-ending Brexit negotiations rumble on.


Berry concluded: “The Government must do what it can to boost the economy during this time of political uncertainty and that’s why we’re calling for a reduction in VAT from 20% to 5% on all housing repair, maintenance and improvement (RM&I) work. Reducing VAT on RM&I work could boost the UK economy by more than £15bn over a fi ve-year period, according to independent research by Experian. This reduction in VAT could also create more than 95,000 jobs and save 240,000 tonnes of carbon dioxide from thousands of homes.


“ At a time of continued political uncertainty and a dip in construction output, a VAT reduction for RM&I is exactly what the UK economy is crying out for.”


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