Project Ireland 'under threat' due to 5pc pay rise, say bosses
Project Ireland is under threat after construction workers were granted a 5pc pay rise within two years, according to employers.
The Construction Industry Federation said the increase will put pressure on companies outside Dublin that are in recovery mode.
It was commenting after Trade Minister Pat Breen backed new minimum wage rates for construction and electrical contract sectors.
Construction pay is set to rise by 2.7pc from October 1 this year and 2.7pc from October 1 next year. Electrical contracting rates will rise by 2.7pc from September 1 this year.
"We are again warning that without strong construction companies operating in the regions, Project 2040 is under threat," said CIF director general Tom Parlon.
However, regional officer for construction at Unite, Tom Fitzgerald, warned that the pay rise will be largely cancelled out by spiralling housing and childcare costs.