Labour Court recommends 7.5% cut to construction craft rates

The Labour Court recommended a 7.5% reduction in construction craft workers’ basic rates, with related differentials and allowances reduced accordingly. Its recommendation was signed on 29 June 2010. The Construction Industry Federation sought lower labour costs, arguing that they would improve competitiveness and support jobs. The Irish Congress of Trade Unions argued that a reduction would cause hardship for workers and would not create jobs. The Court said some reduction was necessary, but was not convinced that the full range of proposed cuts would proportionately increase employment. The Court recommended treating the reductions as temporary, with a review in January 2012 and each following year. It also recommended that the parties jointly raise compliance concerns with the relevant authorities.