Press Release

SIPTU calls for more action against non-compliant construction firms

Date Released: 26 November 2012

SIPTU has called for greater Government action against non-compliant construction companies who are working on public funded projects following the fining of a Tipperary based sub-contractor last week.

In Nenagh District Court on Thursday, 22nd November, Justice Elizabeth McGrath imposed a fine of €2500 on Clonakenny Construction Ltd, of Clonakenny, Roscrea, Co Tipperary, under Section 7 Part 1 of the Industrial Relations Act 1946.

The firm had failed to comply with a Labour Court Order issued in November 2011, directing it to pay €85,677.28 to the Construction Workers Pension Scheme.

The Court found that between 2007 and 2010 the company had failed to make required pension contributions for 62 workers. During this period the firm acted as sub-contractors on private and publicly funded projects, including works at Waterford Institute of Technology, Waterford Civic Offices, Roscrea Leisure Centre and the Solex Housing Scheme, Templemore, Co. Tipperary.

SIPTU Organiser, Pat McCabe, who gave evidence at the District Court, said: “It is important to note that these workers were also deprived of sick pay and death-in-service benefit due to the firms failure to register and pay pension subscriptions. Such actions place compliant firms paying the Registered Employment Agreement rates and pension contributions at a competitive disadvantage. This case again highlights the level of non-compliance with employment rights in the construction industry. Clonakenny Construction was a sub-contractor to Construction Industry Federation firms that failed to ensure compliance as they are obliged to do.”

McCabe added: “Construction workers that remain outside the trade union movement sell themselves short. Employers will not comply with the regulations without strong trade union organisation pressurising them to do so.”

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