Credit facility to golf club withdrawn

Killarney Golf Club has had all of its credit facilities withdrawn, management has confirmed.

The club, in talks with staff over redundancies, told the Labour Court the credit facilities were ceased and withdrawn in November. The court’s report on the hearing quotes the employer as saying the facilities “will not be restored”.

Heavy trading losses over the last five years prompted the club to hire consultants Deloitte to review its organisation and management structure in August. It also opened negotiations with staff seeking pay cuts, the elimination of bonuses, and the implementation of a redundancy programme.

These measures are being resisted by staff in ongoing Labour Court talks. During the negotiations, the club argued that staff were paid higher premiums than those of other golf courses. Siptu argued that the premiums were justified by the fact that, unlike other clubs, Killarney played host to major tournaments. The club hosted the Irish Open just two years ago.

The union also stated that a pay cut of 5% had already been imposed by the club and noted that a bank loan and overdraft had been cleared. Siptu is seeking a redundancy package of four weeks’ pay for every year of service. The club, which employs 41, claims it could not afford such a package.

The Labour Court said both sides should seek a conciliation conference at the Labour Relations Commission.

Club manager Maurice O’Meara confirmed to Radio Kerry over the weekend that the club is in negotiations with staff, but declined to comment on the number of redundancies sought.

Killarney Golf Club is 59% owned by Fáilte Ireland, and a trust holds a further 10% stake. In October, the club sold its Lackabane course to Liebherr on a sale and leaseback arrangement.