The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Only 36% of Construction Workers Pay Into a Pension

Only 36% of Construction Workers Pay Into a Pension
14 May 2021
 

Department for Work and Pensions figures show that only 797,000 employees out of a total industry workforce of 2.2 million were paying into any kind of pension.

The Building Engineering Services Association (BESA), the UK’s leading trade organisation for building engineering services contractors, feels that workers need more protection from poverty in retirement.

The figures, sourced by the union Unite, do not include the tens of thousands of self-employed workers used by construction firms, whose pension participation is believed to be even lower.

Unite National Officer for Construction Jerry Swain said this would result in a “destitute generation of future pensioners”.

 

Contractual Pensions Encouraged by BESA

 

BESA said many should already have pension rights locked into their working conditions and urged employers to take advantage of a working agreement that has had contractual pension provisions at the heart of its wider benefits package for more than a decade.

The National Wage Agreement means that all operatives, including apprentices, have the right to participate in an employers’ contributory pension scheme. As part of a worker’s terms and conditions, employers contribute a minimum of 5 per cent of basic earnings into a qualifying scheme. 

 

Image

 

National Wage Agreement

 

The agreement is negotiated between BESA, on behalf of employers, and Unite, representing the workforce and both parties were congratulated for their “forward thinking approach” when the pension element was added in 2010.

It was set up as part of the terms of negotiated wage settlements before auto-enrolment legislation made contributory pensions a legal requirement for employers.

“The National Agreement has always been, and remains, ahead of the curve as far as pensions are concerned,” said BESA’s Head of Employment Affairs Paula Samuels. 

“Through these contractual pension arrangements, employers continue to demonstrate a long-term commitment to making sure operatives are catered for beyond the lifetime of the employment relationship.”

 

Rewarding Skilled Operatives

 

BESA added that providing a benefits package was an important part of a wider investment by employers in creating a high-quality workforce where skilled operatives were properly rewarded for their loyalty and commitment to professional working practices.

“Employers who take advantage of the full range of in-service benefits via the BESA subsidiary Welplan, such as sick pay, death benefit, and disability benefit, show they value their workers and want to provide for them and their families should the worst happen.

“This also gives the employer a competitive advantage because they can offer better terms to skilled workers, who are in higher demand than ever as the industry bounces back from the pandemic,” added Samuels.

Picture: a photograph of a construction worker, wearing a protective hard hat, working on some steel roofing

Article written by Ella Tansley | Published 14 May 2021

Share



Related Articles

BESA to Help Cut Red Tape for Contractors

The Building Engineering Services Association has become the first trade body to adopt a new industry agreed prequalification standard that promises to cut expensive and...

 Read Full Article
BESA Urges Building Services Employers to Reset Their Approach to Recruitment

BESA’s Director of Training and Skills believes more companies need to “step up and walk the walk by committing to take on more apprentices.” Helen...

 Read Full Article
Building Services Contractors Must Consider Changes to Legal Liabilities 

The Building Safety Act is already changing the legal landscape for the building services profession, according to BESA. The association considers the extension of the...

 Read Full Article
Online Heat Pump Seller Prosecuted for Breaching F-Gas Regulations

An online retailer has been fined for selling HVAC equipment without ensuring that it would be installed by a properly qualified engineer. Appliances Direct (AD) was...

 Read Full Article
Will 2024 be the Year of Retrofit?

The Building Engineering Services Association has urged the UK government to help accelerate growth in the number of whole building retrofit projects carried...

 Read Full Article
BESA Calls Welsh Government’s Cuts to Apprenticeship Funding ‘Nonsensical’

Helen Yeulet​ from BESA has reacted to the Welsh government’s decision to cut funding for technical apprenticeships by almost 25 per cent. In collaboration...

 Read Full Article
Average Tradesperson Loses Out on Over £1,400 a Year Working at ‘Mates Rates’

A survey of tradespeople in the UK shows that they lose an average of over £1,400 a year doing work for free, or at reduced rates, for friends and relatives. 500...

 Read Full Article
The Building Safety Act Presents a ‘Business Opportunity’ for Supply Chain Says BESA

Visibly embracing new building safety legislation presents an opportunity for supply chains to demonstrate a commercial advantage, according to BESA’s new Building...

 Read Full Article
World Ventil8 Day Returns for 2023

The second annual World Ventil8 Day was held on 8 November 2023 to raise awareness of ventilation as a crucial part of human wellbeing. Beginning in 2022, the...

 Read Full Article
British Occupational Hygiene Society Says Government Workplace Plans ‘Lack Proper Regulation’

The Chartered Society for Worker Health Protection has criticised recent proposals introduced in the government's “Working Better”...

 Read Full Article