The north west branch of the Construction Industry Federation (CIF ), which includes Mayo, Sligo and Leitrim, is delighted with the decision taken by their executive body to unanimously reject the pay terms of the draft national social partnership agreement. The industry is now seeking a ten per cent reduction in rates in order to safeguard jobs.
Speaking following the announcement, Ray Gilboy, CIF director of the western and midlands region, said: “The draft national deal proposed in September ignores the reality of where the Irish economy and the construction industry are today. The bottom line is that the industry cannot afford the deal and is seeking a ten per cent reduction in order to safeguard jobs in construction.
“A six per cent increase was never realistic at a time when cost inputs have risen sharply, the housing market is at a standstill with house prices already down by over 30 per cent and contracting companies are tendering eight per cent below costs in an effort to keep some level of work going. Many companies are currently borrowing to meet their existing wage bill, which is totally unsustainable and is driving companies out of business on a weekly basis. In order, therefore, to protect the viability of companies and the jobs that are still in the industry the CIF is taking the example of the Government in seeking a ten per cent reduction in rates.
“The economy and the industry are experiencing unprecedented challenges. Companies are desperately cutting costs in order to survive and it is incumbent on all parties, government, employers and workers to do everything in our power to see us through this period.”
