Engineering Construction Workers Say No to 8.5% Pay Rise

ADVERTISEMENT

Engineering construction workers affiliated with the Blue Book agreement have resoundingly declined the final pay rise offer proposed by contractors. 

The proposal, which was presented last month by contractors under the National Agreement for Engineering Construction Industry (NAECI), would affect a workforce of approximately 7,000. The offer follows a 75p per hour cost of living increment agreed upon half a year ago.

The current two-year pay proposal stipulates an 8.5% increase in hourly rates and travel allowance for 2024. A subsequent 3.5% increase would follow in 2025, with the potential for up to a 5% rise if the consumer price index stays above 3.5%. Contractors, however, caution that future economic uncertainty in the UK has deterred investment and development, leading to fewer major new builds on the immediate horizon.

John Simpson, Managing Director of the Engineering Construction Industry Association, emphasised the challenging financial circumstances of the industry in a letter to the GMB and Unite unions. He noted: “Commercial margins within engineering construction remain extremely tight. While we hope that some of the energy transition projects will reach a final investment decision within the next year, the prospect of NAECI ‘boots on the ground’ on these projects is likely further off than either party would prefer.”

Possible Industrial Action

With a staggering 92% of Unite’s members voting against the wage offer and 98% of these members indicating readiness for strike action, unions are now contemplating the possibility of industrial action. James Poulter, Construction Officer at Unite, declared, “Given these results, on a full and final offer, we are now formally disputing overpay. As such, we will be preparing for a ballot of our members for lawful industrial action.”

Poulter expressed that, despite the disagreement, the union remained open to further negotiations and urged for dialogue between parties as soon as possible. “An offer to meet and negotiate further will remain on the table throughout the process of preparing for and the balloting of members. I will confirm expected dates of ballots in due course; this is expected to take place between August and September,” he added.

The looming potential of industrial action underscores the escalating tensions between the engineering construction workforce and contractors. If unresolved, this dispute could cause significant disruption to the UK’s construction industry in the coming months.

SM Newsdesk
SM Newsdeskhttps://www.scaffmag.com
The staff at ScaffMag.com the leading scaffolding site for a digital generation.

Most popular ↑

CISRS says CSCS notice was served to negotiate “from a stronger position”

NASC president Sarah Klieve says CISRS served CSCS notice to negotiate from a stronger position, as Build UK says the card rules don’t block other sectors.

Adrian Chiles puts scaffolding skills shortage in national spotlight

A Guardian column has brought wider attention to recruitment pressures already affecting scaffolding contractors.

86m Layher scaffold completed at Giotto’s Bell Tower

An 86-metre scaffold erected in just over four months will support a five-year restoration of the Florence landmark while keeping it open to visitors.

Queensland coroner calls for mandatory tower scaffold controls after fatal collapse

A Queensland coroner has called for mandatory additional controls on freestanding tower scaffolds in public places after finding that the industry’s accepted height-to-base rule of thumb was not enough to protect against strong winds.

Saudi firm plans SR1.2bn scaffolding manufacturing complex

Manar Al Omran plans a million-square-metre industrial complex in Saudi Arabia to manufacture scaffolding and formwork for domestic projects and export markets.

Latest news

SAA backs scaffold safety education after Queensland coroner’s findings

SAA supports education following any changes to Queensland’s scaffolding code and calls for stability assessments to account for wind exposure and public safety.
- Advertisement -
More from

STAR Housing seeks scaffolding suppliers for £600K framework lot

STAR Housing is seeking scaffolding suppliers for a Shropshire housing framework, with the dedicated access lot estimated at £606,625 including VAT.

Right-to-work rules extend liability through construction supply chains

Contractors face new responsibilities for labour supplied through subcontracting chains as expanded right-to-work rules come into force.

Housing permission slump raises questions over future scaffolding workload

Planning permissions for new homes in England have fallen to their lowest quarterly level since 2012, raising questions over the volume of residential work likely to reach scaffolding contractors further down the construction pipeline.

Adrian Chiles puts scaffolding skills shortage in national spotlight

A Guardian column has brought wider attention to recruitment pressures already affecting scaffolding contractors.
Latest articles