Red Len McCluskey and a '£35m deal' with his favourite builder: Cronyism row over Unite union's new hotel and conference centre
Britain's most powerful union chief is embroiled in a cronyism row over a reported £35million property deal.
Len McCluskey is under fire from members of his leadership team concerned about a hotel and conference centre being built for the Unite union.
A union source claimed officials had refused to answer questions over allegations of spiralling costs and delays at the site in Birmingham.
Under construction by the Liverpool-based Flanagan Group, it was initially expected to cost £7million and to open in March.
The company runs bars, restaurants and hotels in Merseyside and has won major construction and development contracts from Unite and the city council.
Britain's most powerful union chief Len McCluskey is embroiled in a cronyism row over a reported £35million property deal. The site is under construction by the Flanagan group, which is run by chief executive Paul Flanagan
Pictured: The Birmingham Hotel and Centre complex which is being built in Birmingham by the Flanagan group
It is run by chief executive Paul Flanagan, a plumber-turned-multimillionaire entrepreneur. A flattering profile of Mr McCluskey in Prospect magazine last year said he was ‘proud of prestige projects’ such as the Birmingham venue being built by ‘his Liverpool friend Paul Flanagan’.
As guest of honour in 2014 for an event at Liverpool’s Sir Thomas Hotel, owned by Mr Flanagan, Mr McCluskey said the businessman was from a ‘working-class family who have made good and have never forgotten their roots’.
Mr McCluskey’s union salutes the Flanagan Group as its ‘go-to building firm’ in a testimonial on the company’s official website.
The Unite tribute states: ‘We’ve worked with FBMS (the Flanagan Group) over a number of years, and trust implicitly their ability to complete jobs on time, on budget, and to the most stringent procedural and health and safety practices.
‘Good communicators and experienced professionals, they are our go-to firm for the maintenance and modernisation of Unite premises, across the UK.’
Len McCluskey is under fire from members of his leadership team concerned about a hotel and conference centre being built for the Unite union.
A Unite source said: ‘There is no place for cronyism in this union. We need to know why the Birmingham project is costing so much and why it is delayed.’
Mr Flanagan set up his company in 1991 with his brother Julian. Their mother Kathy, sister Liz and brother John have all worked at its headquarters.
The businessman said in 2013 that he started out on his own when he was ‘pensioned off’ as a plumber after falling through a window in a work accident.
Mr Flanagan owned Liverpool’s Newz Bar, a favourite haunt of footballers and celebrities, and where Gordon Brown held a Cabinet meeting as prime minister in 2009.
A Unite spokesman denied that officials had dismissed attempts to raise issues about the costs and delays.
She said there was ‘full accounting and transparency of all Unite building decisions’. She also denied that the budget had risen to £35million but declined to say how much the centre would cost. Formed from a merger of Amicus and the TGWU in 2007, Unite has 1.4million members.
Mr McCluskey, who is nicknamed ‘Red Len’, became general secretary three years later.