The partners in collective bargaining in construction have agreed to reinstall the expired collective agreement for the industry, which expired on 31 December 2013. The employers’ organisation had given notice in May 2013 of their intention to terminate the existing agreement by the end of the year. The negotiations for the renewal of that agreement started before the summer and did not lead to an outcome. However, with the old agreement being expired the risk of wage dumping and distortion of competition became manifest.
Ailing sector. The sector was hit hard by the economic crisis. The reduction of the workforce accelerated in recent years. According to data collected by the Economic Institute for the sector (EIB) the production of new houses reduced in recent years with 35%. In 2013 the construction volume shrunk with 5%. Employment decreased since the start of the crisis with the equivalent of 70,000 full time jobs.
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