The Construction Industry Federation (CIF) has expressed their disappointment at the negative response by the construction group of unions within the Irish Congress of Trade Unions (ICTU) to the necessary adjustment of the Registered Employment Agreement (REA) terms.

Speaking in reaction to the union decision, CIF Director General Tom Parlon said:"This negative response by the construction group of unions within the ICTU does not reflect the reality of the situation. It is in the construction unions' interests that the industry returns to competitiveness once more but the current REA rates are slowing that process down.

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"Tender prices have fallen and continue to fall, with the result that builders complying with REAs are just not able to compete.

"At a time when we’re trying to encourage investment and job creation in the industry, this response is counterproductive. Construction is very labour intensive, meaning wages have a significant impact on overall costs.

"This type of rhetoric is what is fuelling the black economy, allowing builders who operate outside of the REAs to flourish.

"The construction industry was one of the first hit by the recession and continues to be one of the hardest hit sectors. A performing construction industry helps promote economic growth and employment opportunities. We need to do all we can to help return the Irish construction industry to growth as the benefits willbe widely felt."

(CD)