Great Britain: three-year pay deal in the engineering construction industry

Members of the Unite and GMB unions in the engineering construction industry have agreed to a 7.7% pay deal for three years, running from 2013 to 2015. The agreement covers between 50,000 and 55,000 hourly paid construction workers and applies to major construction projects across Britain, such as oil and gas, petro-chemical and energy projects. By Gregor Gall, Research Professor of Industrial Relations and Director of the Work and Employment Research Unit (WERU), University of Hertfordshire. (Ref. 120708)
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The members of both unions voted to accept what was a final offer from the employers’ group, the Engineering Construction Industry Association, to renew the National Agreement for the Engineering Construction Industry (NAECI, known as the ‘blue book’) on these terms.

With inflation at 2.2% currently and projected to remain around this level for sometime before rising towards the end of 2014, the wage increases are reasonable without being great. Thus, the increases, applied on a pro-rata basis t

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