Thousands of construction workers could be housed in the Olympic Village during the building of the site for the 2012 games.
The move would see an estimated 10,000 workers paying rent of £150 per week to landowner London and Continental Railways and Lend Lease.
Bob Blackman, national secretary for the construction industry at the Transport and General Workers’ Union, said the move was “logical” but the accomodation had to be good quality.
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But construction union Ucatt warned that the move threatened the use of local labour and implied more migrant workers would be used.
A spokesman for the Olympic Delivery Authority told Personnel Today’s sister magazine Contract Journal that talks were continuing.