A wage deal for the heating and ventilating industry sees hourly rates and allowances frozen at the October 6, 2008 rate until October 2010 to support the industry in tough economic times.
The Heating and Ventilating Contractors' Association (HVCA) and the trade union Unite have agreed to the wage rate freeze for workers in the heating and ventilating contracting industry, effective from October 5, 2009.
The agreement sees the workers' wage rate increase by 2% from October 4, 2010.
In a letter to the industry, the HVCA states: "In light of the economic and financial circumstances pressing on employers in the industry at the present time and the recognition by both parties to the national agreement that the interests of the industry are best served by containing installation and production costs, the parties have agreed to extend the lifetime of the present wage agreement to October 3, 2010.
The rates are categorised by grades from foreman to apprentice. About 20,000 individuals are estimated to be covered by the agreement.
The HVCA and Unite have also agreed to incorporate an entitlement for employees to participate in an Employers' Contributory Pension Scheme under the H&V Operative National agreement from October 4, 2010.
From October 4, 2010, bosses under the agreement become liable to pay a pension contribution of 1% of basic earnings, above the primary earnings threshold. The compulsory enrolment of employees into a pension scheme meets the criteria laid down in the Pensions Act 2008, which comes into force in October 2012.
Discussions leading up to the Unite agreement began in 2008, but were deferred in March 2009 until September 2009.
"This agreement acknowledges the considerably more difficult circumstances -in terms of workload, profit margins and payment security - under which building services engineering is currently operating compared with 12 or 18 months ago," said Peter Rimmer, head of the HVCA's Employment Affairs department.
"Given that it is unlikely that prospects for the sector will improve significantly during 2010, it is crucial that employers run as a tight a ship as possible. The agreement concluded with Unite will ensure that labour costs are kept in check - to the long-term benefit of all", he added .
Details of the pension arrangements and its communication to bosses and employees will be worked out by a team established by the HVCA and Unite.
For each worker grade, the current frozen hourly wage rate is shown below and next to it the 2% increase effective from October 4, 2010.
Foreman £14.71 £15.00
Senior Craftsman(RAS + RAW)£13.66 £13.93
Senior Craftsman (RAS) £13.16 £13.42
Senior Craftsman (RAW) £12.66 £12.91
Senior Craftsman £12.16 £12.40
Craftsman (+ 2 RA) £12.16 £12.40
Craftsman (+ 1 RA) £11.66 £11.89
Craftsman £11.16 £11.38
Installer £10.11 £10.31
Adult Trainee £8.52 £8.69
Mate (aged 18 ) £8.52 £8.69
Mate (aged 16 and 17) £3.95 £4.03
Modern Apprentices
(Junior) £5.53 £5.64
(Intermediate) £7.84 £8.00
(Senior) £10.11 10.31
