The pressure on construction wages will only increase

One of the biggest challenges of the construction industry at the moment is the availability of labor and the increase in wages, including the pressure on wages will only increase in the coming years, stated Renārs Griškevičs, chairman of the board of VAS “Valsts nekustamie ipšumi” (VNĪ).

The head of VNĪ states that the labor shortage and pressure on wages will increase not only because of the cost of living, but also because of the large-scale “Rail Baltic” project, because this mega-project will attract such large resources of construction specialists that the others will have to fight hard for those who are available.

“Already, we are often faced with the fact that it is difficult for the general contractor to find subcontractors. There is simply no one to work, and due to an insufficient number of employees, the pace of construction is falling,” says Grishkevics.

At the same time, the head of VNĪ explains that medium and also small entrepreneurs have become more selective – they want correct relations, timely payments, understandable working conditions. Grishkevics admits that studies of the shadow economy show that small construction companies are “in the shadows” more often than large ones, and apparently they are satisfied with this situation. Often, it takes a long time for general contractors to find subcontractors who are able to qualify for the necessary work and are of sufficient integrity. The head of VNĪ also states that highly qualified specialists know their price, and if there is an opportunity to work honestly, then they do so. “Why work in Latvia in uncertain conditions, when in Norway, Finland or Denmark you can not only receive three to four times higher salary, but also work in a more favorable environment? Therefore, we can only congratulate the general agreement of the industry on increasing the minimum wage in construction to 930 euros from 2024 1 .January,” Griškevich says.

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