Building workers on Heathrow Airport's new Terminal Five will be paid a "ground breaking" salary of �55,000, following a deal struck by union leaders.

Bosses at Ucatt said the pay rates would herald a new era for building projects in this country.

Unskilled workers on the project will be paid up to �32,000 a year.

Stephen Byers approved the controversial Terminal Five project Click here to see the proposed Terminal Five

Terminal Five was approved in 2001, by the then transport secretary, Stephen Byers, after almost a decade of consultation.

The �2.5bn T5 project is likely to be operational in 2007.

Opponents have argued that the new terminal will lead to increased road congestion and air pollution.

Company bosses maintain that flight numbers will only increase by 8% when T5 is operational.

General secretary of Ucatt, George Brumwell, said the deal, covering 3,000 workers on the Terminal Five scheme, included on-the-job training and a good occupational health scheme.

He praised contractors Laing O'Rourke for treating its workers with respect.

Electricians on the project are not covered by the deal and are expected to receive even better salaries.

The decision to go ahead with T5 followed a four year public inquiry.

Giving permission back in 2001, Mr Byers said it was "in the national interest" and would keep Heathrow ahead of its rivals worldwide.

He insisted there would be strict controls on noise and the number of flights.

BAA has also welcomed the Terminal Five project as generating or safeguarding about 16,500 jobs in and around Heathrow, as well as creating about 6,000 construction jobs.

The huge investment comes at a difficult time for the aviation industry which has suffered a slump in demand following the 11 September terrorist attacks.

More than 100,000 jobs have been cut worldwide as companies try to trim costs, with many airlines facing bankruptcy.

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