New M&E agreement hailed as giant step forward

The introduction of a single collective agreement for mechanical and electrical (M&E) contracting on major UK construction projects has been hailed as a giant step forward for the whole M&E industry. The Major Projects M&E Agreement (MPA) has been designed to change the culture on large M&E projects, improve performance and productivity, enhance industrial stability, and introduce integrated team working.

The new agreement has pan-industry support and is seen as being a ‘win win’ agreement for all concerned. It will provide, for the first time, a harmonised package of key terms and procedures across the well established industry agreements, for application on the largest of major M&E projects.

The agreement was signed on 6th February by the trade union AMICUS (AEEU and MSF sections) and three M&E employer associations – the Electrical Contractors’ Association (ECA), the Heating and Ventilating Contractors’ Association (HVCA) and SELECT.

The MPA is an enabling agreement. It will not replace the existing and long established collective agreements covering the M&E industry – the Joint Industry Board (JIB), the Scottish Joint Industry Board (SJIB) and the HVCA agreements – but will be incorporated into each of these agreements as a common appendix. It will provide common terms, conditions and procedures on key issues when M&E employees work on major projects.

A mechanical and electrical forum will be set up to take responsibility for the implementation of the new agreement. The forum will comprise representatives from AMICUS and the signatory employer organisations and it will review new major projects before they enter the construction phase. It will then initiate discussions with clients before confirming the project’s Designated MPA status. Designation will be subject to a number of factors, including project size, value and manpower requirements.

On these designated projects there will be opportunities for employees to share in the expected improvements in performance by earning a Major Project Performance Payment. These payments will be £2.20 per hour for craft grades or £3.00 per hour on projects within the M25 motorway.

Paul Corby, national officer of AMICUS and leader of the trade union negotiation team, said, ‘This agreement will lead to a change in the culture on site and will give the industry the opportunity to achieve the improved performance which clients and contractors want.’

George Ashcroft, leader of the employers’ negotiating team, commented, ‘The task now is to launch the new agreement, set up the M&E forum and ensure that clients, contractors, employees and the industry as a whole make the most of the opportunities the agreement provides.’

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