M&E trade union Amicus has reached agreement with employers at Heathrow Terminal 5 over a new pay deal. The move means Amicus will now drop its claim for compensation for travelling to and from the site.

M&E workers at Heathrow’s Terminal 5 construction project have accepted a revised pay deal. The agreement means that Amicus will now withdraw its long-running claims for compensation for travelling to and from the west London site.

The new pay deal will see electricians at T5 earning an extra £1 per hour backdated to 1 February 2005. There will be further 25p per hour increases taking effect in February 2006 and 2007.

The agreement is designed to cover the remaining period of the construction stage until 2008. Sir Michael Latham, chair of the T5 Major Projects Agreement (MPA) Forum, said: “I am very pleased that the parties have achieved an agreement which will provide a platform for the benefits of the MPA to be maximised on this vital project over the next three years.

“While the resolution of the issues encompassed by this agreement has not been easy, the outcome reflects the commitment of Amicus and the employers to the objectives of the MPA and to the success of the Terminal 5 programme on behalf of BAA.”

M&E operatives had previously overwhelmingly rejected a £7 per day payment that the MPA Forum had offered in respect of Amicus’ claims over increased travelling times to and from the busy site.

Amicus had demanded a travel allowance after a £25 a day travel payment was awarded to building and civil engineering workers. Amicus’ travel claim has now been withdrawn.

“These payments are in full and final settlement of all outstanding issues at T5,” said Steve Brawley, ECA employee relations adviser and secretary to the MPA Forum.

The extra £1 per hour being paid to m&e workers at T5 is broken down into two parts. The first 25p covers an increase in payments applying to all schemes coming under the MPA. The remaining 75p relates specifically to the Terminal 5 project.

BAA is so far the only client to sign up to the MPA.