Siptu votes in favourof Great Southern deal

The Dublin Airport Authority said yesterday that a decision on a new owner for the Great Southern Hotel group would be made within…

The Dublin Airport Authority said yesterday that a decision on a new owner for the Great Southern Hotel group would be made within the next few weeks following an overwhelming vote by Siptu members to accept a deal allowing for the sale to go ahead.

Siptu said yesterday that its members had voted by an overwhelming majority in favour of a Labour Court recommendation and an agreement with the company on the sale of the eight hotels in the group.

A spokeswoman for the Dublin Airport Authority, which owns the hotel group, said last night that tender documents on the planned sale were being examined and that a decision on a purchaser was expected in the next few weeks.

Siptu's national industrial secretary Gerry McCormack said last night that one of the main features of the agreement was that the new owners would recognise the union's right to negotiate on behalf of all future workers.

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"The agreement also covers a voluntary severance package, payments on transfer to new owner and conditions of employment on transfer to new owner," Mr McCormack said.

He said the Great Southern Hotel group would establish a helpline for employees and tax consultants would be made available free of charge at each hotel.

"Approval of the proposals was subject to a number of issues concerning the payment of outstanding monies due under Sustaining Progress within an agreed timeframe and the terms of reference for the independent third party regarding disputes, redundancies and transfer payments to be agreed," Mr McCormack stated.

The Great Southern group, which is a State asset, has hotels at Dublin, Cork and Shannon airports, as well as two each in Kerry and Galway and one in Rosslare, Co Wexford.

The group has been making losses for a number of years.

Last January the board of Great Southern Hotels concluded that the only viable option in the interest of all stakeholders was to dispose of the assets as a going concern.

Workers employed by the hotel group were offered the option of a severance package or retention of their jobs after a sale of the hotels.

Those leaving were offered eight weeks' pay per year of service, while those who chose to stay would receive a "loyalty payment" of six weeks' pay for every year worked.

The Labour Court recommendation said that calculation of redundancy pay in terms of service and the rate for calculation purposes should be in accordance with the provisions of the Redundancy Payments Acts (1967-2003), taking full service into account from start of employment. Service should be calculated pro rata for those in seasonal and/or part-time employment.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent