A new and improved pay deal has been secured for workers in the Construction Industry Joint Council (CIJC).

GMB, Unite and Ucatt unions have all agreed to a two year settlement that will see a 2.5% pay increase from July 25 and a further rise of 2.75% in June next year.

Subsistence allowance and sick pay will also increase at least in line with these rises, while travel allowances will now be paid in miles as opposed to kilometres.

From January next year, workers will also receive a further day’s holiday, which the unions say is equal to a further 0.4%, along with more flexible arrangements for holiday usage.

Further additional pay increases will also be given to the rates for some skilled operative workers, such as banksman, slinger/signaller, telehandler drivers and fork lift truck operators.

The unions said that despite the settlement, they had informed the employers that the agreement was ‘not fit for purpose’.

Among their concerns were the absence of a mechanism to apply the agreement to company supply chains, lack of recognition of the living wage in London and rates of pay.

Brian Rye, acting general secretary at Ucatt, said that the deal makes sure that workers will enjoy increases above the rate of inflation for the next two year period.

He added that employers must understand that the CIJC agreement does not meet the workforce’s needs and without radical reform it may soon no longer be relevant to the industry.

John Allott, the national officer for construction at Unite, said that employers must understand that the deal does not in itself provide a solution, rather it is the start of a journey to address many of the problems faced by members of the construction industry.

Last month, Ucatt’s members voted in favour of a move to merge with Unite, which will mark the end of Ucatt as an independent union.