2.75% Rise for Construction Workers

The Federation of Master Builders (FMB) and the Unite union have agreed a 2.75% pay rise for construction workers for the year ahead. The Building & Allied Trades Joint Industrial Council (BATJIC) has agreed a one year deal involving a 2.75% pay rise to come into effect in June 2019. This follows negotiations between the FMB, on behalf of SME construction employers, and Unite on behalf of industry operatives. BATJIC has also secured tax dispensation from HM Revenue & Customs for lodging allowance and daily fares allowance for this year’s Working Rule Agreement after several years’ hiatus.

The key information is:- BATJIC has agreed a one year deal involving a 2.75% pay rise over the next year. All apprentices and trainees will also benefit 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 NVQ2 intermediate craft rate increases to £11.02 per hour The changes come into effect on Monday 24th June 2019.

Under the new deal, adult general operatives will get £9.78 per hour, rising to £11.02 per hour for those with S/NVQ2: City & Guilds London Institute Intermediate Craft qualifications and £12.79 for S/NVQ3: City & Guilds London Institute Advance Craft.

FMB chief executive Brian Berry said: ” This agreement strikes the right balance as it recognises the hard work that employees are putting into their work but at the same time, it reflects the uncertainty that many construction firms are facing. This increase is above last year’s rate of inflation, according to all three of the leading indexes, and sends out a strong message to tradespeople that we value them and want to retain them. It’s no secret that economic forecasts are quite conservative for the years ahead, given the unknown impact of Brexit, but I feel that this is a good compromise from the perspective of both employers and workers”.

Jerry Swain, Unite national officer for construction said: “Unite welcomes this agreement which recognises inflation 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 affecting confidence in the industry. I’m pleased that BATJIC has been further strengthened this year by successfully jointly lobbying for tax dispensation from HMRC in respect of employee expenses. It was important that we secured the dispensation from HMRC in respect of lodge payments, as this now formalises the position regarding taxation of lodge payments. The dispensation give peace of mind to our members and ensures that they will not face any claims for retrospective payment of tax when receiving lodge payments while working away from home”.