Construction sector agreement: a step toward fairer competition, but compromises remain

The construction industry's general agreement, which sets a minimum monthly salary of €1,050 and a minimum hourly rate of €6.29, marks an important step toward a more level playing field, yet it does not solve all the sector's challenges. This is argued in an opinion piece by the chairman of construction company BauArt.

Under the agreement, this level of pay applies to all those employed in construction. The author sees it as a signal that the industry is moving toward a more transparent and socially responsible business environment. At the same time, he stresses that €1,050 is not a salary that can attract experienced specialists in the long run; rather, it corresponds to the level of an assistant or a worker without prior experience. Professional builders, equipment operators and other skilled workers already earn significantly more, and BauArt had competitive pay in place even before the agreement came into force.

The main point of the agreement, according to the author, is not the wage level itself but the creation of uniform rules for all market participants. For years, the construction sector has struggled with unfair competition, as some companies cut prices at the expense of taxes or employees. If all companies operate under the same principles and pay all taxes, price differences between comparable offers cannot be very large. When differences are disproportionate, a legitimate question arises about what exactly the lower price is based on.

However, the agreement alone does not guarantee the disappearance of dumping or envelope wages; much will depend on monitoring mechanisms and on how customers behave. As long as procurement continues to follow the "lowest price at any cost" approach, pressure on costs will remain, creating a risk that some firms formally comply while preserving shadow-economy elements.

Labour costs, meanwhile, keep rising, and material, energy and transport prices have fluctuated noticeably in recent years. Customers will therefore increasingly have to choose between the cheapest bid and a sustainable outcome. The author also notes that many long-term contracts historically lacked cost indexation mechanisms, leaving contractors to work at prices set under completely different economic conditions, which undermines investment and stability.

In his view, the construction sector is currently in a period of compromise: builders need to deliver quality, pay taxes honestly and offer competitive wages, while customers must understand that quality construction cannot be based solely on the lowest price. Builders, customers and the state are all in the same boat. Only through cooperation can fair competition become the norm rather than the exception. If the agreement helps reduce the shadow economy and create more equal conditions, everyone stands to benefit – but this requires a willingness to honour its principles and accept the associated compromises every day.