The body representing Irish builders has voted down the pay terms detailed in the draft national social partnership agreement, calling for a 10% cut in pay rates in order to secure construction jobs.

The Construction Industry Federation's Director General Tom Parlon announced the decision earlier this afternoon.

He said: "The draft national deal negotiated in September ignores the reality of where the Irish economy and the construction industry are today.

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"The bottom line is that the industry cannot afford the deal and is seeking a 10% reduction in order to safeguard jobs in construction."

Mr Parlon suggested a 6% increase was "never realistic" at a time when cost inputs have risen sharply and the housing market is "at a standstill".

In addition to house prices falling by over 30%, the CIF boss said contracting companies are "tendering 8% below costs in an effort to keep some level of work going".

He added: "In order, therefore, to protect the viability of companies and the jobs that are still in the industry the CIF is taking the example of the Government in seeking a 10% reduction in rates."

(PR)