The firm Close Protection UK, which provided security services for the Jubilee celebrations, says it is going to investigate reports that it left unpaid workers stranded in London during the Jubilee celebrations.
Former deputy prime minister Lord Prescott believes it is a "very bad incident" which is of great concern as "it may well be establishing the practice for the coming Olympics".
He told the Today programme that it shows a "complete disregard" for the social conditions of cheap labour.
Molly Prince, managing director of Close Protection UK, accepted that "logistical planning errors were made".
"The whole situation has been exaggerated", she told James Naughtie, but admitted that the arrival in the morning was "badly handled".
"We're not in the business of exploiting cheap labour", she said.
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