London 2012 'facing strike risk'

The cost of hosting the Olympics has already risen dramatically

Building projects for the London 2012 Olympics could be hit by strikes and delays unless a uniform rate of pay for workers is agreed, a union has warned.

Building union Ucatt said not doing so was "recipe for industrial disharmony".

It claims varying rates among 10,000 staff working on projects including the main stadium will cause delays as they switch jobs to get the best pay.

The Olympic Delivery Authority (ODA) said pay was set at "a national rather than a workplace level".

Work on the 80,000-seater Olympic Stadium is due to begin in April in Stratford, East London.

Up to 45 contracting firms, including carpenters, bricklayers, roofers, plumbers, electricians and drivers, are expected to be involved.

Walkouts

Ucatt said the delayed Wembley Stadium and over-budget Scottish Parliament building in Edinburgh were examples of projects where a single pay deal was not in place.

In contrast, it said, Heathrow Terminal 5, which is due to open on time in March, has had a single pay rate.

It is not too late for these problems to be revisited and resolved Alan Ritchie, Ucatt

A spokesman for Ucatt said that, unless the same was done at the Olympics site, "workers will have the option to switch between contractors in search of better rates of pay, or down tools and walk off site in protest".

General secretary Alan Ritchie told the Times newspaper his union was "100% committed to the London Games being a total success".

"However, I fear that the ODA's refusal to agree a common site rate is a recipe for industrial disharmony, delays and cost overruns," Mr Ritchie said.

"It is not too late for these problems to be revisited and resolved."

The ODA said it was committed to good employment standards.

A spokesman told The Times: "We have agreed a positive partnership with construction unions under a memorandum of agreement which includes contractors recognising existing construction and allied industries' national working rule agreements and pay rates.

"These are set periodically by a joint employer and union body at a national rather than a workplace level."

London 2012 has a total budget of £9.3bn, with £3.1bn earmarked for construction of sites including an aquatic park and velopark.

When the Olympic bid was launched in 2003, then culture secretary Tessa Jowell told MPs it would cost £2.375bn, including a 50% contingency.