At the beginning of July 1997, Britain's largest general workers unions, GMB and TGWU, were calling for members in the construction industry to back industrial action on up to 50 "prestige" building sites, including the millennium dome project in London's docklands, Manchester airport and the Channel tunnel.
After a difficult start, employers and trade unions in the construction industry managed to reach a settlement in July 1997 over the UK's largest private sector national agreement.
At the beginning of July 1997, Britain's largest general workers unions, GMB and TGWU, were calling for members in the construction industry to back industrial action on up to 50 "prestige" building sites, including the millennium dome project in London's docklands, Manchester airport and the Channel tunnel.
The problem arose after a wage freeze was imposed when national talks broke down with the Construction Confederation employers' organisation, and the threat of industrial action brought all parties back around the negotiating table. The TGWU chief negotiator, George Henderson, stated that "the employers have indicated that they will be making an improved offer, and I hope we can now break the deadlock and reach a realistic agreement."
The agreement which was reached in subsequent negotiations is a three-year pay deal (the unions had previously rejected a four-year deal), which will raise rates of pay for craft workers by 32% over the whole period.
With effect from 29 June 1998, a new working rules agreement will become effective which includes a new pay structure and the consolidation of additional payments into basic pay, to provide the following rates:
| Classification | Weekly rates based on 39 hours (hourly basic pay in brackets) | |
|---|---|---|
| . | 1998 | 1999 |
| General operative | GBP 164.97 (GBP 4.23) | GBP 177.45 (GBP 4.55) |
| Skill rate 4 | GBP 177.84 (GBP 4.56) | GBP 191.10 (GBP 4.90) |
| Skill rate 3 | GBP 188.76 (GBP 4.84) | GBP 202.80 (GBP 5.20) |
| Skill rate 2 | GBP 201.24 (GBP 5.16) | GBP 216.45 (GBP 5.55) |
| Skill rate 1 | GBP 209.04 (GBP 5.36) | GBP 224.64 (GBP 5.76) |
| Craft operative | GBP 214.50 (GBP 5.50) | GBP 235.95 (GBP 6.05) |
The Construction Confederation said that the agreement and new working rules will encourage training, provide a framework for the recognition and reward of skills attainment, and improve the image of the industry.
The negotiations had originally stalled over differences between the employers and unions over the operation of the EU working time Directive. The employers wanted to be able to average the hours out over a 12-month period, while unions were in favour of a more decentralised approach. Both sides have now agreed a form of wording which is to their satisfaction.
The national building and engineering agreement covers some 600,000 workers and is the biggest negotiated in the private sector. If the strike had gone ahead it would have been the first national strike in the construction industry for 20 years. The settlement will now go to a ballot of members for approval.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Construction industry wage agreement, article.
