The Construction Industry Federation is to seek Labour Court approval for a 20% cut in pay rates.
The CIF said tender prices have dropped by 30% since the economic downturn began but that wage costs have not reduced in line with that reduction.
At the beginning of 2011 an agreement between the CIF and unions led to a 7.5% cut in wages for construction workers.
However, the CIF says further reductions are needed to try and prevent more job losses and improve competitiveness.
In addition to the 20% pay cut for all construction workers, the CIF is also proposing that new entrants start on the statutory minimum wage.
They are also seeking changes to overtime, travel and subsistence payment agreements.
The Congress of Trade Unions is arguing that further pay cuts will not help to protect jobs.
It has said construction workers are prepared to look at pay-related costs in a creative way but will not accept a "slash and burn approach" to solving problems in the industry.
Dennis Farrell Deputy General Secretary of the Building and Allied trade union has said that "we have raised consistently, that there are no measures to address the black economy in the industry, which is rampant."
