Firms step up drug tests to halt abuse among City workers

Around 16 per cent of British companies are now testing current employees for drugs, with 14 per cent routinely testing new employees, according to research by the Chartered Management Institute.

A study by The Rowntree Foundation which found "anecdotal evidence for an increase of drug testing in some high-profile firms, particularly in the financial sector where there are no obvious health or safety justifications."

One corporate lawyer quoted in the Rowntree Foundation study which reveals growing drug use said: "I have known one company that had a 'snorting room' in the City.

"People turn a blind eye with regard to drugs and alcohol - but also with a range of other behaviour - because they don't want to lose a key employee...someone who can make a lot of money."

In the past the heaviest users of on-the-spot tests have been industries with safety concerns such as building, transport and energy, legal and financial firms are also hunting out drug abusers through screening, according to research.

Government figures put the cost of illegal drug use on industry at £800million a year, in lost productivity and increased absenteeism according to the National Treatment Agency.

The Chartered Management Institute found that the number of firms testing randomly for drugs was even higher in London - at 22 per cent and in Scotland - 24 per cent - than the average 16 per cent for the rest of the country.

The Information Commissioner, the watchdog for data protection, has voiced concerns that the "collection of information through drug and alcohol testing is unlikely to be justified unless it is for health and safety reasons."

The Rowntree Foundation also warns that an employee could test positive for drugs taken some time ago, and "is not a guide to current intoxication".

It adds: "There is no evidence that drug testing at work has a significant deterrent effect."

Some companies, such as Network Rail, are legally obliged to test employees for drugs. In others, such as building, the moves are prompted by safety concerns.

Construction firm Laing O'Rourke is testing all its employees working on sites for the London Olympics. The firm has revealed that it sacked ten per cent of its workers who tested positive for alcohol and drugs.

Out of 1,500 staff randomly checked it sacked 124 for using cannabis, 41 for cocaine and 28 for using both drugs.

The firm said: "Everyone should have the right to go to work and return home safely."

"As part of our health and safety procedures we tell all our staff and sub-contractors that we will randomly test for alcohol and drugs and make clear the consequences of a positive test. Counselling is available to those who seek support prior to testing."

While drug abuse is a headache for employers, it is dwarfed by alcohol abuse which is estimated to cost industy a staggering £6.4bn a year.