After more than nine months of talks, Olympic leaders and the trade unions have finally signed a deal governing how workers will be employed on the London 2012 sites.

Union leaders have been pushing for 100% direct employment among the 9,000 workers who will flood the site during the peak construction periods between 2009 and 2011. But the Olympic Delivery Authority has watered down the demand by committing to the ‘ethos’ of direct employment with some self employment allowed only after consultation with union representatives.

Both sides are hailing the deal as a victory in what was billed as a landmark agreement for the future of industrial relations in construction.

One source close to the talks told CM: ‘There has been a lot of arguing over this and the end result is a bit of a fudge. The unions have been pushing like mad for 100% direct employment, but that doesn’t reflect the reality of how most jobs are run.

‘There is always an element of self employment and most of the people on site want to work that way anyway because they are better off tax wise. This commitment has now been agreed, but I’m sure you’ll find self-employed people all over the Olympic job.’

The ODA is still looking at signing a pay and conditions deal for thousands of M&E workers expected on the job. Olympic chiefs are in negotiations with backers of the Major Projects Agreement, which guarantees electricians salaries of £50,000 in return for improved productivity and a no-strike deal. The agreement has so far only been used on Heathrow’s T5, but its supporters are hopeful a version will be implemented at the Olympics.

Source

Construction Manager