A deal has been reached with the Building and Allied Trades Joint Industrial Council (BATJIC) involving a 5% pay rise for workers.

The two-year agreement was successful following negotiations between the Federation of Master Builders, on behalf of SME construction employers, and Unite the union, on behalf of operatives.

Workers are set to receive a 2.5% pay rise this year and a further 2.5% increase in 2017.

Hourly rates for lower paid general operatives will receive a 4% boost this year followed by a 2.5% in 2017.

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In addition, the agreement includes a commitment that the 2017 rise will be 'inflation-proofed'; if inflation is higher than 2.5% in early 2017, the pay rise will match this, up to a limit of 3%.

Brian Berry, FMB Chief Executive, said: "I am pleased we were able to reach this agreement. This is a good deal which provides certainty and reassurance to employers and employees alike. It strikes the right balance between on the one hand recognising the importance of boosting pay in line with solid growth and positive future expectations, and on the other hand accepting that margins continue to be tight and the economic outlook continues to be clouded by a number of uncertainties."

John Allott, Unite's National Construction Officer, added: "We welcome this pay increase and the FMB's commitment to the BATJIC agreement. The higher increase to the lowest paid was needed, as many operatives living standards took a knock during the economic downturn."

(LM)