The landmark deal agreed between Laing O'Rourke and the construction unions has transformed the position of electricians' union Amicus in its negotiations with M&E contractors over a national pay deal for major projects.
Amicus is upset about the T5 deal because it breaks the understanding that it had reached with BAA, the client for the project, that wage rates on the project should be part of national agreements.

Paul Corby, Amicus' national construction officer, said BAA had agreed to work within the framework of national agreements and that the Laing O'Rourke deal did not comply with that position.

The union is also concerned about the amount agreed. Under the national agreements now in force, skilled builders earn 拢7.40 an hour and electricians 拢11.26. If that differential was maintained, electricians at Heathrow would be earning almost 拢75,000.

Corby said that if he was unable to reach a satisfactory agreement for T5 as part of a national agreement for major projects, it was likely that electricians would have to negotiate locally through regional union advisers.

The deal will send shockwaves through the industry

Paul Corby, M&E union Amicus

He said: "The T5 project is not now likely to be included in the major projects agreement; the Laing O'Rourke deal changes everything and will send shockwaves through the industry."

An Amicus insider added that the builders' deal would put intense pressure on M&E contractors to offer their operatives a deal over and above the 拢55,000 salary.

He said electricians would not tolerate earning less than the builders on the T5 site, and that they would fight it out until a deal was struck. "The worst-case scenario is that we could be facing a wave of strikes similar to the problems that occurred on the Jubilee Line in the late 1990s."

One leading M&E contractor expressed concern at the Laing O'Rourke deal and said the contractors on Terminal 5 may have to alter their budgets to allow for the pay increase.