Upward only rent reviews are costing jobs
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The Government has been urged to take action to end upward only rent reviews which are negatively impacting on workers' wages and employment in the hospitality and catering sector. SIPTU Services Division Organiser, John King, said: “The hospitality and catering sector is experiencing unprecedented growth. This growth is being partly fueled by tourist numbers and spending, with 2014 seeing these return to levels only experienced prior to the recession. “However, ever increasing rents are adversely impacting on many workplaces in the services sector. Rather than increased productivity resulting in wage and job growth, growing revenues are being siphoned off by property owners at the expense of the wider economy.” In January, Bewley's announced job losses at its café in Grafton Street, Dublin. Bewley’s had fought an unsuccessful legal battle with its landlord, Ickendeal Ltd, which is controlled by property developer Johnny Ronan, to have its €1.5 million annual rent reduced to €728,000, as suggested by a third-party arbitrator in January 2012. The Government had committed to ending upward only rent reviews but later stated that advice from the Attorney General specified that such a move would be unconstitutional. READ FULL STORY HERE
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