M&E unions threaten war over T5 pay deal

The warning comes as BAA continues to review the implications of accepting the MPA. The company was to announce its decision back in April, but CJ understands the review has been extended following union demands that BAA apply the MPA not only to T5, but to all its framework contracts.

A letter from Andrew Wolstenholme, BAA's construction director on T5, dated 8 May, revealed BAA's concerns. The letter, sent to union officials and contractors involved in the negotiations, states: "As you know we have been undertaking an intensive review on whether the MPA is an appropriate agreement for the T5 construction programme. You will also be aware we have extended our consideration on the appropriateness of the MPA to our group construction activities, as well as to the potential impact if the MPA is not considered suitable for either group activities or T5."

Two months on union leaders and contractors are becoming increasingly frustrated at BAA's intransigence.

Amicus national construction officer Paul Corby told CJ: "I am bewildered at its stance. The MPA represents everything BAA supposedly stands for. Why shouldn't it apply across the board?

"It is all about the logistics of employing people on a major project with the ethos of joint planning, harmonious working and a focus on performance. But if BAA doesn't want to adopt it, our members will get the correct level of earnings on that site, come what may."

He added: "If BAA thinks it can build T5 and not call it a major project and get it on the cheap, it is very wrong. If BAA expects our members to sign up to something like the O'Rourke deal and go to work on a basic rate and operate a price work system, the job will become a battleground."

Contractors are also concerned about the implications of BAA's decision on the future of the MPA. One source close to the negotiations said: "If BAA doesn't sign up to the MPA it will be a body blow to the future of the agreement. We are all trying to persuade BAA to see it the way we see it. But if it doesn't, I fear it will be facing significant difficulties in terms of industrial relations.

"Yes, there is a price to pay in terms of additional rates, but what is gained in terms of harmonious working relationships is more than enough compensation. The alternative could be similar to the disaster of the Jubilee Line Extension."

A BAA spokeswoman said a decision would be made in the next few weeks. She added: "We have been reviewing in detail the implications of the MPA for BAA and T5 for some time, but that process has not finished."