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SIPTU Calls For Action On Upward Only Rents

Published on Jan 7 2015 9:28 AM in Retail

SIPTU Calls For Action On Upward Only Rents

Following the announcement of Bewley's six month closure, SIPTU have called on the government to take action on upward only rent reviews, which are negatively impacting on worker's wages and employment in the hospitality and catering sector.

According to SIPTU Services Division Director, John King, the hospitality and catering sector is experiencing massive growth fuelled by tourism and increased spending. He added however, that, "ever increasing rents are adversely impacting on many workplaces in the services sector. As witnessed in the case of the announcement of job losses at the Bewley's Café in Grafton Street, Dublin, upward only rent reviews in some circumstances are actually contributing to job losses."

King also pointed out the Bewley's workers do not have the benefit of a collective bargaining agreement, acknowledging that, "The workers who face losing their jobs due to the decision to implement redundancies at Bewley's cafe in Grafton Street are not only the victims of the system of upward only rent reviews but also the lack of legislation to protect collective bargaining."

Bewley's had fought an unsuccessful legal battle with its landlord, Ickendeal Ltd to have its €1.5 million annual rent reduced to €728,000, as suggested by a third-party arbitrator in January 2012.

© 2014 - Checkout Magazine by Jenny Whelan.

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