Chief executive Ray O’Rourke described action to tackle the coronavirus crisis as like “a war effort” in an internal memo to all staff on Wednesday which has been seen by the Enquirer.
The moves affect 8,000 employees across the UK.
O’Rourke said: “We must act swiftly and decisively to protect the long-term prosperity of Laing O’Rourke and its people.
“This is the equivalent to a war effort and we’re introducing temporary measures which will be kept under review as we battle the impacts of COVID-19.
“We appreciate that this situation is extremely difficult for our people and should not last any longer than the current crisis dictates.
“Once the business determines that the current crisis is over, we will seek to reinstate people’s salaries and roles.
“These measures are regrettable but essential if we are to get through this period, and then emerge strongly as a pillar to help rebuild the UK economy and our communities.”
Salary changes will take immediate effect with Grades 1,2 and 3 cut by 20%, Grades 4,5,6 and lower 7 bands by 25% and upper 7 bands and Grade 8 by 30%.
Operatives and staff on inactive projects or conducting non-essential tasks will be put on furloughed leave where the Government will pay their wages up to a maximum of £2,500 a month.
The move follows a 30% pay cut in base salaries announced for the Laing O’Rourke senior leadership team of 90 directors last week.