Developing construction workforce priority in Labour’s Alternative Budget

Labour’s Alternative Budget commits to:

• Pay apprentices at least the minimum wage and abolish apprenticeship fees;
• Support training using the National Training Fund surplus;
• Stamp out bogus self-employment and protect the construction SEO process.

Speaking in advance of the publication of Labour’s Alternative Budget, Labour workers’ rights spokesperson Marie Sherlock has outlined Labour’s plans to increase the construction workforce in Ireland to deliver much needed homes.

Senator Sherlock said:

“If we are to have any hope of solving the housing crisis, we need to make working in construction an attractive and viable career path. This can be done by providing stability, decent pay and good conditions to workers, which this Government has failed abysmally to provide. Labour has a clear plan to enhance Ireland’s construction workforce, to pay apprentices fairly and to ensure we build better together.

“Not enough young people are entering apprenticeships, and too many are dropping out before completion. We know from research carried out by Connect Trade Union that pay is a significant barrier. The apprentice year one rate is a mere €7.17 an hour, and year two is just €10.75 an hour. This Government continues to sit on its hands when it comes to the apprentice wage issue.

“We understand that 3,400 craft apprentices have failed to complete their apprenticeship over the past three years due to drop-outs or pauses and that there is no real understanding of why this is happening, but these subpar wages are leading to a massive issue of apprentice recruitment and retention.

“If Government are serious about dramatically increasing construction employment and ensuring a steady flow of apprentices into the sector, they must look at apprentice pay.

“In May 2023, Labour Senators introduced legislation to ensure apprentices are paid the National Minimum Wage. Then Minister for Further and Higher Education and the current Taoiseach acknowledged that wages should not be a barrier to apprentice participation, and we saw a series of briefings from Government that he would bring forward amendments to the Construction Safety Licensing Bill. Over 16 months on, there has been radio silence on this.

“That’s why the Labour Party is focused on a suite of measures to develop Ireland’s construction workforce in our Alternative Budget. As part of Labour’s housing proposals, we see the introduction of a State Construction Company as key to protecting workers against the boom-to-bust nature of construction employment that many workers experienced under Fianna Fáil’s watch.

“Hiring apprentices through a State Construction Company would ensure that apprentices are paid decent wages, afforded good working conditions and have a degree of security as such a company would not be beholden to market cycles.

“The restructuring of the construction industry towards subcontracting following the Fianna Fáil led 2008 crash has led to bogus self-employment becoming rife in the industry. More needs to be done to stamp this malign practice out and afford workers security, along with benefits like sick pay and pension contributions. Labour’s proposed State Construction Company will create direct employment and exert pressure on the private building sector to improve conditions.

“It’s time to build better together. Labour is committed to taking action for the long-term and ensuring that planning is in place to build the homes that are needed today and into the future.”