SIPTU has agreed a new three-year pay deal with the Society of the Irish Motor Industry (SIMI), which secures a 21% increase in wages for craft workers employed across the sector over the next three years.
The deal between SIMI and SIPTU affects craft workers such as car mechanics, HGV mechanics, agricultural mechanics, light vehicle body repairers - including panel beaters and spray painters - which work across the motor industry in Ireland.
These workers are employed in enterprises such as car dealerships, repairers, vehicle distributors, wholesalers, retailers and vehicle testers.
"The agreement includes a 15% increase in basic pay, implemented since July 1, 2024. This is followed by a 3% increase in basic pay from July 1, 2025 and a further 3% increase in basic pay from July 1, 2026. The deal will expire on June 30, 2027," SIPTU sector organiser Denis Sheridan.
"These significant pay increases result from the exceptional economic environment of high inflation and major cost of living increases over recent years," he said.
"The increases take into account the rises in pay rates for other craft workers across the economy which had resulted in craft workers in the motor industry being at a major disadvantage and a flow of skilled workers out of the sector," he added.
The new deal also includes agreement on action on issues including apprenticeships, tax relief for tool purchases and licensing of the crafts across the sector.
Denis Sheridan also said that SIPTU and SIMI have agreed that a forum will be established during the lifetime of today's agreement to progress and promote the interests of apprentice craft workers with the aim to attract more apprentice craft workers into the industry.
"Both parties also believe that craft workers in the industry are entitled to a significant improvement in the current flat rate tax allowance for the purchase of tools. Given the high cost of a full tool kit and the need to regularly update it, we agreed to pursue this matter jointly with Revenue," he said.
