Fears have been raised about the prospect of hospitality workers being paid less than a living wage on the 2012 Olympics project.
The London Citizens campaign group has accused the Olympic Delivery Authority (ODA) of reneging on an agreement signed in 2004 to pay Olympic workers a minimum London weighted living wage of £7.05 an hour.
But the ODA has denied ever signing a deal with the group, insisting it could not force contractors to pay the enhanced hourly rate.
Neil Jameson, lead campaigner at London Citizens, told Caterer sister title Personnel Today: "The ODA has, in effect, lied to us by saying that it now has no obligation to pay workers a decent wage."
But David Higgins, chief executive of the ODA, rejected the claim and said the authority was committed to promoting the improved wage. He said while it would "encourage" contractors to pay the living wage, it was too early to say how that would work in practice.
Industry body People1st estimates that at least one million extra hospitality workers will be needed by 2012, to fill vacancies and accommodate growth.
By Daniel Thomas
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