The Building & Allied Trades Joint Industrial Council (BATJIC) has agreed a 2% pay increase to take effect from 17 June.
The rise will be across the board, except for the hourly rate for the ‘’Adult General Operative’, which is to increase by 3%.
There will also be improvements in the death benefit scheme (increased to £25,000) and statutory sick pay will rise to £119 per week.
Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said: “Despite a continuing challenging market and bleak outlook for some time to come, we are pleased to have been able to reach this agreement with Unite [the builders’ union].
“Those involved in the construction sector are all too aware of the continuing pressures from rising material costs, regulatory burden and chronic difficulties in accessing finance, so we are happy to be able to underline employers’ continued commitment to maintaining standards and capacity across our industry.
“This settlement reflects employers' determination to preserve jobs while delivering an equitable pay increase to hard-working employees even during difficult times.”
John Allott, Unite’s National Construction Officer, said: “We welcome the FMB’s increase and commitment to the agreement and direct employment. The higher increase to the lower pay was needed, as many operatives are struggling to pay rising food and energy bills.”
Latest employment figures from the Office of National Statistics show:
- Employment in the UK for everyone aged 16 and over was 29.73million in October to December 2012, a rise of 154,000 compared with the previous three months.
- Unemployment for everyone aged 16 and over was 2.5million in October to December 2012, a fall of 14,000 on the previous three months.
- In recent months full-time employment has been increasing and over the past year it has increased by 394,000, the largest annual rise in people working full-time since 2005.
- Since the quarter October to December 1997 employment in the UK has increased by around 3.1million – 794,000 of the increase accounted for by those born in the UK and 2.3million by those born outside the UK.
- However, since October to December 2011 employment has increased by around 589,000, of which 380,000 was accounted for by people born in the UK and 212,000 by those born outside of the UK.