Minimum wage changes for construction workers

According to the Construction Industry Joint Council (CIJC), the minimum wage for construction workers is now £8.03 for general operatives and £10.67 for a craft worker.

In their announcement the CILJ state that the change will apply to workers who fall under the terms of the Working Rule Agreement, which totals some 500,000, but they don’t actually clarify who these “under the agreement” include.

Steve Murphy, the secretary for UCATT, said: “Construction workers undertake physically demanding, highly skilled jobs and it is essential that all companies covered by the CIJC pay the agreed increase.”

Although this is an obvious move forward for some people could there potentially be a negative effect for others?

An increase in minimum wages is always welcome, but are employers going to view this simply as an additional expense. If they have to employ someone on a higher wage, are they going to employ them or look for a solution elsewhere? Will the employer employ a person if the cost is greater than the value produced?

Take for instance a bricklayer who gets paid £10.67 per hour on a 40hour week (£426.80). This, along with a general operative’s wage of £321.20, produces a combined total of £748.00. At today’s rate of £300 per thousand for bricks, he needs to lay roughly 2500 bricks to cover his wages. If the bricklayer is only laying 1500 bricks, then is it worth him being employed?

So, is the increase a good thing? On a personal level I think the increase is too low. To become a qualified tradesperson through the NVQ route involves a lot of hard work and plenty of studying and commitment, with workers not reaching the top rate until they are fully qualified (if your are under twenty one then the minimum wage is less). The rise is also not in line with the level of inflation over the past few years so maybe it should be be recalculated. As the secretary of UCATT stated, “Construction workers undertake physical demanding highly skilled jobs”, so let the wages reflect this.