Members of the Construction Industry Federation have unanimously rejected the national pay deal.
The CIF has also been mandated by its members to serve notice on the building unions that they are seeking a 10% pay cut.
The CIF said the Government's proposed 6% national wage increase was never realistic at a time when cost inputs have risen sharply, the housing market is at a standstill with house prices already down over 30%. It added that many firms are tendering 8% below costs in an effort to keep some level of work going.
'The draft national deal negotiated in September ignores the reality of where the Irish economy and the construction industry are today,' commented CIF Director General Tom Parlon.
'The bottom line is that the industry can not afford the deal and is seeking a 10% reduction in order to safeguard jobs in construction,' he added.
The Irish Congress of Trade Unions said it noted the decision 'with regret', adding that trade unions with members in the construction sector were now free to present pay claims. ICTU said the implications of the CIF decision needed 'some reflection'.
SIPTU general president Jack O'Connor also said he 'very much regretted' the decision. 'It is ironic that the employers who benefited more than any other sector of Irish business from the social partnership model that created the Celtic Tiger, many of whom have grown wealthy beyond their wildest dreams, should be the first to renege on it,' he said.
