The five-star Ashford Castle Hotel in Cong, Co Mayo, with reported revenues of more than €8 million a year in 2002 and 2003, is using the "béal bocht" argument to avoid giving 150 of its workers a pay increase recommended by the Labour Court, counsel for the Siptu trade union told the High Court yesterday.
The workers have had no pay increase between 2002 and 2006, Richard Keane SC said.
The hotel has taken proceedings aimed at overturning the Labour Court pay determination for the hotel's workers. The hearing concluded yesterday and Mr Justice Frank Clarke said he hoped to give judgment on June 20th.
Mr Keane told the court that in 2003 the hotel reported revenue of €8.9 million, with a decrease in payroll costs from €486,000 in 2002 to €446,000, and an increase in marketing costs from €528,000 to €567,000.
The hotel says implementing the proposed wage increases would involve a 17 per cent rise in payroll costs of some €300,000 per year, would lead to loss of employment and leave the hotel in crisis.
It also says the Labour Court appeared to have shown no regard for the hotel's ability to pay the increased wages.
General manager Niall Rochford said the hotel's problem was made worse by the lack of resources to carry out a much-needed refurbishment of the property.