Ashford Castle is to take legal advice on whether to implement a Labour Court determination that it should improve pay and conditions for its 140 staff.
The five-star hotel in Cong, Co Mayo, was told by the court in January to increase pay rates by an average of 15 to 20 per cent and to improve conditions under a range of headings, including sick pay and pensions.
The decision followed a three-year campaign by Siptu on behalf of members working at the hotel, which refuses to negotiate with the union.
The hotel was given a month to implement the determination, but sought clarification from the court. This was issued last week.
Both sides are now considering legal action. Siptu says it will seek to have the Labour Court decision enforced by the Circuit Court, while the hotel is contemplating High Court action to have the decision overturned.
The hotel, which quotes rates from €291 a night for a standard room to almost €1,000 for the presidential suite, is owned by a group of business people includ- ing the O'Reilly family. Independent Newspapers Ireland chairman Gavin O'Reilly is a member of its board.
In its determination in January the Labour Court said workers at Ashford Castle were entitled to "fair and reasonable" rates of pay and other conditions of employment.
In formulating its decision, it had had "particular regard" to rates of pay and other conditions of employment established by collective bargaining in hotels providing a similar level of service to Ashford Castle.
It recommended the introduction of a new sick pay scheme and disciplinary procedures as well as changes to the hotel's pension scheme. It also told the hotel to clarify to customers its service charge arrangements.
Dealing with pay, the court set out the minimum rates that should be paid to all fully trained and qualified staff, based on a 39-hour week. It recommended that a receptionist receive €350 per week, a day porter €372, a night porter €411, a housekeeping assistant €372, a linen porter €372, a bartender €450, a still room assistant €337, a wash-up assistant €337, a waiter or waitress €450 and a chef €450.
In a letter of clarification to the hotel on March 16th, Labour Court chairman Kevin Duffy said the rates of pay specified were the "minimum basic rates applicable".
He also said the court intended that a service charge, where applicable, would be in addition to the pay rates recommended.
The hotel's general manager, Niall Rochford, said it would take legal advice before deciding on a course of action, but it was not ruling out any options. It is understood these include an application to the High Court for a judicial review of the Labour Court proceedings. Siptu official Colm Keaveney said the union would take whatever legal action was required to have the court's decision enforced.