Oireachtas Joint and Select Committees

Wednesday, 26 April 2023

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Sectoral Employment Order (Construction Sector) 2023: Department of Enterprise, Trade and Employment

Photo of Mick BarryMick Barry (Cork North Central, Solidarity) | Oireachtas source

There are a number of issues with the sectoral employment order that has been proposed for construction. First, on a cost-of-living point the proposal is for a 1.9% increase in September of this year, to be followed by a 3.5% increase in August of next year. Breaking that down, it equates to a pay increase of 40 cent per hour, or €16 per week, in the middle of a cost-of-living crisis. Inflation is more than 7%, the price of basic essential items such as foodstuff etc. is rising at a faster rate than that. I do not think it is a sufficient pay increase given the cost-of-living pressures that bear down on working people in general, and construction workers in this instance.

I also point to the fact that a package for developers was announced yesterday which in my view amounts to a gift of €1 billion from the State, from the taxpayer, to developers in the hope this money will be used to build more housing. On top of the profits already being made a top-up is being paid by the taxpayer and that is in a context not just for looking at housing output but also looking at the wages paid to construction workers. That is a 1.9% increase this year at the same time as developers have €1 billion flowing their way.

I am informed that there is a group of subcontractors who will attempt to challenge the sectoral employment orders, SEO, and quite possibly, challenge them in the courts. This points to the need for workers in the construction sector to organise. They should organise, on the one hand to stop wages being dragged downwards, and also to ensure that the 1.9% and 3.5% are merely a base from which they push on to improve their wages and conditions through trade union organisation and so on.

I make one final point to the Minister of State because it is an important issue. It is good that we are having the debate and the discussion in the committee today, but the discussion should be brought onto the floor of the House. We need more, not less, debate on the cost of living. Proposed wage increases for workers in a key sector of the economy, which set a certain guideline or indication for other groups of workers as well, is a key cost-of-living issue now. Let us have the discussion on the debate, not just at the committee here but on the floor of the Dáil. I ask the Minister of State's opinion as to whether he would support that as a proposal.

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