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No plans for Bewley's to reduce terms and conditions of Grafton Street staff when reopening

The head of Bewley’s says there are no plans to reduce the terms and conditions of staff at...
Newstalk
Newstalk

07.01 6 Jan 2015


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No plans for Bewley's...

No plans for Bewley's to reduce terms and conditions of Grafton Street staff when reopening

Newstalk
Newstalk

07.01 6 Jan 2015


Share this article


The head of Bewley’s says there are no plans to reduce the terms and conditions of staff at the café's Grafton Street branch if they choose to reapply for work after renovations.

140 staff at the landmark cafe are being laid off as the café closes for at least six months for a refurbishment.

Bewley's said the €1.2m a year losses were unsustainable.

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Chief Executive John Cahill told The Last Word on Today Fm that workers will be welcome to apply for the jobs before September:

"There is no proposal to reduce any terms and conditions. What we will have when we open is a refreshed offer, it will be a different offer, there will be different positions, the operation will work in a different way. And we will advertise those jobs and undertake those applications in the normal way,” he said.

The café says the changes are "to secure its long term future on Grafton Street, where the café has a massive rent burden and is currently significantly loss making".

This will include a refurbishment and restoration costing more than €1m.

The premises has not been renovated since 2005 and Bewley's says is in need of work now to ensure its conservation and a suitable environment for customers.

The operating costs for the café include an annual rent of €1.5m and it is loss making at a rate of some €1.2m per annum.

The company adds that while a third party arbitrator set a rent - from January 1st 2012 - of €728,000 per year, the higher rent is still in place.

It is planned to re-open the café with a simplified focus on the ground floor and basement. It is thought this reduction in scale will help reduce costs.

"The café will be repositioned to enhance its appeal to consumer tastes with a focus on high quality handcrafted coffees, speciality teas, baked goods and patisserie. The plans include expanding the craft bakery," the firm says in a statement.

Bewley's says it will enter into consultation with staff to explore ways in which some of the proposed redundancies might be avoided.

The group CEO, John Cahill, said: "We are planning this development in spite of adverse conditions including an excessive rent. We have fought for a market reflective rent in court cases up to and including the Supreme Court where unfortunately we received an adverse ruling."

"Ongoing and major losses are not a viable option for the café. We have a choice of either permanent closure or investing in a realignment and rejuvenation of the café."

"It is deeply regrettable to Bewley's that the proposed period of closure is likely to result in redundancies for our dedicated café staff."

Newstalk.com's business editor Ian Guider says the café will be repositioned when it re-opens its doors.


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