Minister Richmond approves new Sectoral Employment Order for workers in the Construction Industry

 

PRESS RELEASE: Minister Richmond approves new Sectoral Employment Order for workers in the Construction Industry

 

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FOR IMMEDIATE RELEASE

 

Contact: Press Office. Department of Enterprise, Trade and Employment

 

Phone: +353 1 631 2200

 

Email: press.office@enterprise.gov.ie

 

 

Minister Richmond approves new Sectoral Employment Order for workers in the Construction Industry

 

Friday, 14 April 2023

 

Neale Richmond, Minister of State for Employment Affairs and Retail Business has accepted the Labour Court recommendation for new minimum pay and pension contribution rates for workers in the construction sector.

 

Minister Richmond said:

 

“I am pleased to approve this Sectoral Employment Order (SEO) for the construction sector which will commence on 18th September 2023.

 

“This SEO will provide for increased rates of hourly pay for workers in the construction sector, as well as amendments to the minimum pension contributions. Further increases in pay will commence from 5th August 2023.

 

“From September 18th, craftspeople will see their hourly rate increase to €21.49; those workers in category A, including those with an advanced Scaffolding Card and who have four years’ experience – bank operatives, steel fixers, crane drivers and heavy machine operators will receive €20.86 per hour; and workers in Category B, skilled general operatives with more than two years’ experience, will receive €19.35 per hour.

 

“This SEO will make a real difference to workers in the sector not only by increasing rates of pay but also by providing certainty for workers. The inclusion of a legally binding disputes procedure will also ensure that any disputes that arise in the sector can be addressed effectively and fairly.

 

“Apprentices will also benefit from this SEO, with an increase in their legal minimum pay, including time they spend in education.

 

“Ensuring that our construction industry is strong and dynamic is a priority of the Government, as this is crucial to meeting our housing needs. By supporting those workers currently in the industry, as well as ensuring it remains an attractive career for young people, we can ensure that the high standard of talent and skills we have in the industry will remain into the future.”

 

In accordance with the requirements of the Industrial Relations (Amendment) Act 2015, Minister Richmond has referred the matter before the Houses of the Oireachtas to seek a resolution approving the making of an Order giving effect to the recommendations.

 

 

Note for Editors

 

The Labour Court recommendation to the Minister 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.

 

Recommendation of the Court made under Section 16 of the Industrial Relations (Amendment) Act, 2015 to amend its previous recommendation confirmed by the Minister in S.I. 598 of 2021.

 

Pay Rates

 

Basic hourly rates of pay from 18th September 2023 to 4th August 2024

Craftsperson €21.49 per hour

Category A Worker €20.86 per hour

Category B Worker €19.35 per hour

 

Apprentice

Year 1 - 33.33% of Craft Rate

Year 2 - 50% of Craft Rate

Year 3 - 75% of Craft Rate

Year 4 - 90% of Craft Rate

 

A minimum hourly rate of basic pay of €15.64 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.

 

Basic hourly rates of pay from 5th August 2024

Craftsperson €22.24 per hour

Category A Worker €21.59 per hour

Category B Worker €20.03 per hour

 

Apprentice

 

Year 1 - 33.33% of Craft Rate

Year 2 - 50% of Craft Rate

Year 3 - 75% of Craft Rate

Year 4 - 90% of Craft Rate

 

A minimum hourly rate of basic pay of €16.19 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.

 

Minimum Pension Contribution

Pension contribution from 18th September 2023 Employer daily rate - €5.96 (weekly - €29.78)

Employee daily rate - €3.97 (weekly €19.87)

Total contribution daily into the scheme per worker - €9.93 (weekly €49.65)

 

Pension Contribution from 5th August 2024 Employer daily rate - €6.17 (weekly - €30.82)

Employee daily rate - €4.11 (weekly €20.57)

Total contribution daily into the scheme per worker - €10.28 (weekly €51.39)

 

 

For definitions, please see S.I. No. 234/2019 - Sectoral Employment Order (Construction Sector) 2019] –

 

See more on the 2021 SEO

 

                 

ENDS

 

The Department of Enterprise, Trade and Employment (DETE) plays a key role in implementing the Government’s policies of stimulating the productive capacity of the economy and creating an environment which supports job creation and maintenance. The Department has lead responsibility for Irish policy on global trade and inward investment and a remit to promote fair competition in the marketplace, protect consumers and safeguard workers.

For further information please contact Press Office, D/Enterprise, Trade and Employment, press.office@enterprise.gov.ie or (01) 631-2200

If you no longer wish to receive emails from the Department of Enterprise, Trade and Employment Press Office, please notify us by email to press.office@enterprise.gov.ie

 

 

 

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LE HEISIÚINT

LÁITHREACH

 

Teagmháil: Preasoifig, An Roinn Fiontar, Trádála agus Fostaíochta

 

Guthán: +353 1 631 2200

 

Ríomhphost: press.office@enterprise.gov.ie

 

 

 

Ordú Fostaíochta Earnála nua faofa ag an Aire Richmond d’oibrithe in Earnáil na Tógála

 

 

Dé hAoine, 14 Aibreán 2023