Tuesday, 10 July 2007

Olympics Could Face Financial Catastrophe If Key Decisions Are Not Taken

Following the publication today (July 10) of the Public Accounts Committee’s report into the financial monitoring of the Olympics, construction union UCATT, have warned that the games could be beset with much greater financial problems.

Construction unions led by UCATT are deadlocked in talks with the Olympic Delivery Authority, over a Memorandum of Agreement, which will largely govern what form of employment is used to build the Games.

Unions back a 100 per cent directly employed workforce, (the same model used to build Heathrow Terminal 5). Direct employment will mean that contractors for the Olympics will be able to secure their workforce and will be unlikely to face a recruitment crisis.

The Olympic Delivery Authority favours a flexible approach, with the use of bogus self employed, possibly migrant workers, in an attempt to reduce costs.

UCATT are further alarmed that the ODA are reluctant to set a site rate for what various professions earn at the Olympics. Instead the ODA want to allow contractors and sub-contractors the flexibility to set their own rates.

UCATT fear that without a site rate, an “arms race” is likely to develop with workers demanding regular wage hikes to stay in line with workers, working for different contractors. Construction experts and industrial relations specialists believe that the flexible approach on wage rates favoured by the ODA could be disastrous, leading to wildcat strikes and industrial anarchy.

Any such stoppages will inevitably cause delays and cost overruns. Without a robust industrial relations partnership it will be far more difficult for the unions to promote harmonious working practices.

Alan Ritchie, general secretary of UCATT, said: “The report by the Public Accounts Committee is to be welcomed. However their concerns could only be the tip of the iceberg, if the ODA fail to establish a comprehensive industrial relations partnership. The union movement is fully committed to creating a highly successful Olympic games. Trying to build the Olympics by exploiting the workforce will not be tolerated.”