The National Engineering Industry Agreement (NAECI) establishes full employment conditions for hourly paid construction workers in major engineering projects, repair and maintenance sites and events/failures across the UK. Ineos confirmed that it would invest in an additional furnace to support Grangemouth`s production capacity requirements behind shale gas imports from the United States and that construction would be provided under the National Agreement for the Engineering and Engineering Industry (NAECI) – commonly known as the “Blue Book.” The construction industry is relatively fragmented, with few dominant players in most sectors, whether industry or country. This situation will develop only slowly, with a handful of very large companies and a predominance of small and medium-sized players serving niche markets. Global construction output increased by 3 per cent in 2007 to $4.7 trillion, compared with growth of nearly 5 per cent in 2006. The U.S. market continues to dominate the world stage as the largest domestic construction market, accounting for 25% of the world`s total area. Japan comes in second, followed by China. This is followed by Italy, France, the United Kingdom, Brazil, Spain, Korea, Mexico, Australia and India. NaECI was concluded in 1981 as a labour regulation agreement for the entire mechanical engineering sector. Since then, many construction projects have been successfully completed with NAECI.
However, NAECI is not just about new construction, as customers at a number of large industrial facilities support the use of NAECI for their long-term repair and maintenance work, as well as for breakdowns, turnarounds and events. Gary Cook, the organiser of GMB Scotland, said: “For the past two years we have been fighting to end the under-edcing of industry agreements in the acquisition and implementation of EfW projects in Scottish councils. Sectoral employment contracts (SEOs) covering wage, sickness and retirement rates across the construction, mechanical construction and electricity sectors were signed following the adoption by the Ministry of State for Enterprise, Trade and Employment of labour court recommendations. One of the main negotiating objectives for construction services defined by members prior to the Hong Kong Ministerial Conference was the removal of the following barriers (TN/S/23): developing country markets have been the most dynamic in recent years. China and India stand out: construction spending is increasing by more than 8% per year. Then Korea, Brazil and Mexico. Growth is also impressive in Russia and the United Arab Emirates. In the early years of negotiations on services, several negotiating proposals were put forward for construction services, both by the members who promoted development and by the member states (i.e. the European Communities, Australia, Korea, New Zealand, Brazil and Cuba). There were also cross-sector proposals from Chile, Kenya and Japan. Related construction and engineering work includes construction and civil engineering, installation and assembly, building construction and finishing.