Around 400,000 construction workers covered by the Construction Industry Joint Council (CIJC) are to receive a pay rise next month, it has been announced.

Rates will increase 2.5% from 25 July 2016, and then by a further 2.75% in June 2017.

The improved two-year deal has been reached following negotiations with the CIJC between unions UCATT, Unite and GMB.

Under the agreement, workers will receive an extra day's holiday from 01 January 2017, worth an additional 0.4%, while taking holidays has also been made more flexible.

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Travel allowances have also been reconfigured and will now be calculated in miles rather than kilometres. Skilled operative rates including

slinger/signaller, banksman, fork lift truck and telehandler drivers have received pay increases above the basic award.

However, despite the settlement, the unions have put employers 'on notice' that the agreement is "increasingly not fit for purpose".

Areas of concern include: rates of pay, the failure to recognise the London Living Wage, the lack of a mechanism to ensure the agreement applies to company supply chains and several other matters.

Brian Rye, Acting General Secretary of UCATT, said: "This deal ensures that workers will enjoy above inflation increase for the next two years. However employers need to understand that the CIJC agreement does not meet the needs of the workforce and unless it is radically reformed it will soon cease to be relevant to the industry."

(LM/MH)