More than 10,000 electricians will not receive a 5% pay increase because employers are challenging the way wage rates in the sector are set.
National Electrical Contractors Ireland complains that it was not allowed to participate in negotiating a new Registered Employment Agreement for the sector despite representing over 500 contractors.
The Technical Engineering and Electrical Union has threatened to take industrial action if the increase is not paid.
There are more than 5,000 electrical contractors in Ireland, employing over 10,000 electricians.
Traditionally, employer and union representatives agreed the electricians' wages in a legally binding Registered Employment Agreement.
The latest deal would have increased the hourly rate for electricians by €1 (5%) an hour to €22.54.
However, a new group representing electrical contractors is set to challenge the validity of that REA.
National Electrical Contractors Ireland says the process is fundamentally flawed and unfair because the employer negotiators only represented less than 10% of the contractors affected by the deal.
They stress that they want to pay decent wages but say they cannot afford this increase.
However, the union representing most electricians says it will take industrial action if the increase is not paid.
The Labour Court will hear arguments on Monday on this tricky dispute.
However, many observers expect this to become a fully fledged legal challenge in the High Court that could affect REAs in a number of other sectors.
