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2009

Construction workers left over €48,000 short as contractor drags feet over wages and pension contributions

Date Released: 21 Dec 2009

SIPTU members employed by Westmeath companies, Oliver Donlon Development Limited and Clare Hill Plant Ltd, have found they will not be paid outstanding wages in the run up to Christmas. The 25 members concerned are owed €48,375 in arrears. The amounts vary from €1,398 to €3,961 each, and range from between six weeks and two weeks wages for work carried out on multi-million euro state contracts.

The men are also due payments for public and annual leave associated with the Christmas break. The projects in which the company is involved include the Menlough Group Water Scheme for Galway County Council, the Killadooley Childcare Group in County Laois and a school extension at Killyloughteen in Newcastle, County Limerick.

The workers, who are members of a newly organised section in the SIPTU Midland Construction Branch, have complained to the Rights Commissioner Service under the Payment of Wages Act, 1991. The firms are also in breach of their own written terms and conditions of employment.

Ddirectors of both companies are identical and Clarehill Plant Hire Limited was engaged as a subcontractor by Oliver Donlon Development on the Menlough project. There have also been problems with pension subscriptions from workers being passed on to the Construction Workers Pension Scheme. Clarehill Plant Hire Ltd has failed to cooperate fully with an investigation by the Construction Industry Monitoring Agency (CIMA) and the matter has now been referred to the Labour Court, as the company is in breach of the Registered Employment Agreement for the Construction Industry.

Oliver Donlon Development has already had to agree to pay outstanding pension contributions dating back as far as 2006 in some instances. However, Clarehill refused to co-operate with the CIMA investigation and has been referred to the Labour Court by SIPTU.

“The clients, most of them public bodies, have been made fully aware of the issues surrounding the non payment of wages and the lack of compliance with the Registered Agreements,” said SIPTU Organiser, Pat McCabe. “Donlon Development was due to sign contracts with Meath County Council last week for the Townsparks Regeneration Project in Navan, but the closing of the deal has been postponed until 7th January, 2010.”

“Although the workers have been loathe to take industrial action in support of their position, they have grave concerns about whether the companies will honour their obligations and pay the outstanding monies, including arrears of pay and holidays due,” Pat McCabe said.





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