The pay cut was signed off as part of the CFMEU’s new draft enterprise bargaining agreement obtained by The Australian Financial Review.

According to the paper, the EBA would offer employers reduced wage rates and cuts to redundancy, union training levy and income protection contributions.

Master Builders Association of WA industrial spokesman Kim Richardson reportedly said the draft EBA recognised the “reality” of the market conditions.

“It’s an unusual position for the CFMEU to make a concession,” Richardson told the paper.

“The union, to its credit, has taken on a more pragmatic approach.

“The most recent union draft EBA is a major step forward in the union accepting the reality of the market that employers who sign up to a union EBA and employ union members have to compete and work in.”

The draft agreement is being distributed to major builders and subcontractors and is expected to replace the CFMEU’s 2011-14 EBA.

If approved, it will be in place for the next three years until June 2017.