The former Hull MP said there had been a "complete disregard" for the conditions of the stewards, who were forced to sleep in the cold under London Bridge in the early hours of Sunday morning during the jubilee celebrations.
The Labour peer warned the incident could set the tone for the treatment of workers during the Olympics. He said Home Secretary Theresa May should look at the conditions of employment by companies like Close Protection UK, who provided stewards during the weekend.
The unpaid labourers were brought in as part of the Government's Work Programme, under which unemployed jobseekers must take up placements in order to continue receiving benefits.
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Emma Jesson brings you Sunday evening's forecast for Yorkshire and Lincolnshire
Wet and windy spells, interspersed with drier interludes this week. Wintry showers and variable temperatures. Gales and a weather warning
Mainly dry and cloudy today, rain on and off, some bright spells. Milder than of late but breezier