The proposed rise is the first pay increase for workers covered by the Construction Industry Joint Council agreement since 2008.

Unions representing the nation’s builders have rejected the offer which is due to kick-in from January 2012.

The unions are also unhappy about the timing of the deal because the current Working Rule Agreement runs out this month and they want to see any pay increase come into force immediately.

Unite national officer for construction, John Allott said: “Unite, along with Ucatt and the GMB, have rejected this offer as it is inadequate given the soaring cost of living and the fact that our members have not had a pay rise for three years.

“We are seeking a further improvement in the offer.

“However, we welcome the employers’ commitment to this national agreement where building workers are employed directly in preference to self-employed and agency workers. This gives greater security of employment to our members.”

George Guy, Acting General Secretary of Ucatt, who led the talks, said: “Construction workers have borne the brunt of the downturn in the industry.

“It is simply unacceptable that employers are trying to postpone a pay rise until 2012. The employers now need to return with an improved and realistic offer.”