Mechanical Contracting Sector - Trade Union Increases Recommended Pay Rates
Although the Mechanical Contracting Sectoral Employment Order (SEO) was formally quashed in 2023, many employers in the mechanical engineering and building services sector continue to follow the rates and terms recommended by the Connect Trade Union.
In May 2025, Connect announced a new round of pay increases, which we must presume were agreed with a number of unionised companies. While these rates are no longer legally binding on the sector as a whole, they continue to serve as the benchmark industry standard, particularly for employers operating in unionised environments or engaging in public sector contracts.
Why Employers Continue to Follow Union Rates
Even in the absence of a statutory requirement, the Connect Trade Union rates remain widely applied. This is driven by several practical and commercial factors:
- Industry Expectations - Many public bodies and main contractors expect compliance with union rates when awarding work.
- Workforce Relations - Continuing to align with recognised terms helps maintain positive industrial relations and minimise the risk of disputes with Connect Trade Union.
- Attracting Talent -In a competitive labour market, benchmarked and transparent rates support recruitment and retention of qualified tradespeople.
- Consistency and Clarity - Using established rate structures avoids confusion and ensures alignment with sector norms.
Updated Pay Rates – Effective May 2025
The revised rates announced by Connect Trade Union came into effect from 1st May 2025, based on a standard 39-hour working week:
| 01-Jan-2025 | 01-May-2025 | 01-May-2026 | |
|---|---|---|---|
| 3.4% | 3.2% | ||
| 10th Year Qualified (Long Service Rate) | €28.12 | €29.08 | €30.01 |
| 6th Year Qualified | €27.77 | €28.71 | €29.63 |
| 5th Year Qualified | €27.60 | €28.54 | €29.45 |
| 4th Year Qualified | €27.44 | €28.37 | €29.28 |
| 3rd Year Qualified | €27.29 | €28.22 | €29.12 |
| 2nd Year Qualified | €27.10 | €28.02 | €28.92 |
| 1st Year Qualified | €26.72 | €27.63 | €28.51 |
| Apprenticeship Rates | |||
| 4th Year Apprentice | €24.05 | €24.87 | €25.66 |
| 3rd Year Apprentice | €20.04 | €20.72 | €21.38 |
| 2nd Year Apprentice | €13.36 | €13.82 | €14.26 |
| 1st Year Apprentice | €8.91 | €9.21 | €9.50 |
The below may also be relevant where historic union agreements are in place or where the company is bidding for projects that require adherence to union sector norms;
- Travel and subsistence payments
- Overtime premiums
- Pension and sick pay contributions
What This Means for Employers
While you are not legally obliged to follow the Connect Trade Union rates since the SEO was quashed, it is important to consider the broader implications in not following them.
What should employers do:
- Review Pay Structures
Ensure your current rates are competitive and aligned with your contractual or operational context. - Audit Employment Contracts and Site Agreements
Remove any outdated references to the SEO and ensure your terms reflect current arrangements. - Communicate with Staff
Whether applying the new rates or maintaining existing ones, keep employees informed and engaged. - Seek HR Advice Where Needed
If you are considering any changes to pay or conditions, professional guidance can help manage risk and protect industrial harmony.
Supporting You Through Change
At MSS The HR People, we work closely with clients across engineering, construction, and related industries to ensure their employment practices remain compliant, competitive, and commercially sound.
Whether you are updating contracts, managing pay reviews, or preparing for union engagement, we are here to support you with clear, practical advice.
For tailored HR support, contact us at info@mssthehrpeople.ie PH: 01 8870690
