Strike averted as SIPTU agrees deal with hotel group

SIPTU has withdrawn the threat of strike action by its 700 members working in the Great Southern Hotel group and agreed to Labour Court recommendations on the sale of the group.

The union had threatened the industrial action because of the deadlock with the owners of the hotels, the Dublin Airport Authority (DAA), over employee entitlements, ahead of the sale of the chain.

It was demanding that the DAA would ensure any new owners would continue to comply with existing collective agreements and maintain existing pension entitlements, reckonable service and reckonable pay.

The matter was brought to the Labour Court last month and it issued a recommendation to both sides, which was accepted almost immediately by the hotels group.

Yesterday, SIPTU followed suit.

Its national industrial secretary, Gerry McCormack, said: “The main features of the agreement are that it is a condition of the sale that the new owners would recognise the union’s right to negotiate on behalf of all future workers and that the new owners would establish a defined contribution pension scheme for all former employees at the same contribution rate as currently exists.

“The agreement also covers a voluntary severance package, payments on transfer to new owner and conditions of employment on transfer to new owner. The GSH Group will establish a helpline for employees, and tax consultants will be made available free of charge at each hotel.

“The agreement covers approximately 950 employees and the negotiating committee are happy that the terms provide the best possible deal for those wishing to take the severance package and protects the employment conditions for those who will transfer to new owners. Nevertheless we are still of the view that the Great Southern Hotel Group should have remained in State ownership.”

An independent third party, Tom Wall, has been appointed to chair talks over outstanding issues including disputes, redundancies and transfer payments which have yet to be agreed.

A DAA spokeswoman said it welcomed news that the union was accepting the Labour Court recommendations.

“The sale of the group will happen in the coming weeks. The tenders are being assessed,” she said.