SIPTU and Jurys Doyle Group go to arbitration at the Labour Relations Commission next month after talks stalled over redundancy terms for up to 220 workers. Barry Roche, Southern Correspondent, reports.
They could lose their jobs when the firm closes and rebuilds its hotel on the Western Road in Cork next year.
SIPTU branch secretary Mr Tom O'Driscoll confirmed that redundancy terms had blocked progress and both sides had agreed to refer the matter to the LRC where it will be heard in Dublin on November 5th.
Jurys Doyle group chief executive Mr Pat McCann declined to comment further on the nature of the disagreement since the LRC would arbitrate next month, he said.
Similarly, Mr O'Driscoll declined to comment on the precise disagreement but employee sources said the company initially made an offer of two weeks' pay per year of service and while this had been improved on, it still fell short of what SIPTU deemed acceptable.
Meanwhile, Mr O'Driscoll expressed disappointment that the firm could not guarantee staff jobs when the new hotel reopened.
"The new hotel will take two years to build and there are no guarantees that people are going to be rehired after that period and we're very disappointed at that," said Mr O'Driscoll.
Jurys Doyle will sell the existing hotel to property developer Mr Owen O'Callaghan who will develop a 185-bedroom hotel along with 300 apartments on a separate part of the four-acre site.
The development should cost €100 million and O'Callaghan Properties will then lease the hotel to Jurys Doyle over a 35-year period.
Jurys Doyle considers the existing hotel - which is two storeys high but spread over a long distance - is uneconomical and the new six-storey hotel will offer the same accommodation but over a more compact area.
The new hotel, to be built by Bowen Construction, will not include a banqueting area.
The firm applied for planning permission on August 13th and a decision is due from Cork City Council on December 16th.
A total of 22 submissions have been received to date including several from concerned citizens who fear the hotel will obstruct views of the historic St Fin Barre's Cathedral from Sunday's Well.