The pay deal for workers at Heathrow’s Terminal 5 will have left employers and unions sharpening their swords – and electricians and firefighters gnashing their teeth
The news that skilled workers at Heathrow’s Terminal 5 will be earning £55,000 a year will have major repercussions for national pay deals across the construction industry. Unions will be putting pressure on other major projects to match the salaries – failure to do so may result in disgruntled workers and possible strike action.

The deal between Laing O’Rourke and the construction unions (UCATT, GMB and T&G) will also mean that unskilled workers will be on £32,000 at T5. UCATT general secretary George Brumwell said that the deal includes a commitment to direct employment, and an occupational health scheme. An insider said the deal also includes shift payments and 29 days paid holiday.

Amicus, the electricians union, with old-Labour Derek Simpson at the helm, is likely to be the first to turn the heat on employers. It is upset that the Terminal 5 client BAA has appeared to renege on an agreement that stated that any T5 wage deal would be part of a national pay agreement.

Insiders suggest that M&E contractors will be under pressure to pay their operatives over £55,000 a year, as electricians earn around 50% more than skilled workers under current national agreements. The current shortage of electricians would give Amicus a strong bargaining position in any salary renegotiations.

The general skills shortage in construction is particularly relevant to Heathrow. Employment in construction in the area increased by 45% between 1995 and 2000 and over the same period the number of unfilled construction vacancies doubled. To attract the workers required to meet BAA’s requirement of 16,000 person-years of employment over six years, a Local Labour Strategy has been drawn up.

BAA has identified a number of groups that could help fill the skills gap. They include women, ethnic minority groups, school leavers and refugees. BAA is also providing £150,000 per annum over the next ten years to get local people involved. This will fund a dedicated recruitment centre, which will be looking to attract local long-term unemployed onto the project.

The forces of supply and demand are likely to tempt workers from outside the industry too. Public sector employees struggling to make ends meet in the capital are obvious candidates. One group of disgruntled workers springs readily to mind – firefighters would find working life a whole lot more lucrative on Terminal 5. Even if their union did persuade the government to pay them £30,000 a year – an increasingly unlikely prospect – firefighters would still be earning £2,000 less than labourers at Heathrow.