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Booksellers at Irish chain Eason will not receive a Christmas bonus this year after a court said the retailer should complete a review of its business first. The dispute over bonuses had been referred to the Irish Labour Court after Eason and Irish trade union Siptu (Services, Industrial, Professional & Technical Union) failed to reach an agreement over its payment. Eason has not paid staff a Christmas bonus since 2008. The bonus is equivalent to one week's pay.
At a hearing at the court, Eason said that it had lost €21m (£19m) for the year ending 31st January 2009 and that it was under "severe" pressure from its banks to repay loans and could not pay the €400,000 (£362,145) required for the bonus.
Siptu argued that during Eason's boom years, it had shared profits with shareholders and not its workers. It blamed Eason's woes on "imprudent" property investments. It suggested the bonus recognised additional work done by staff during a peak trading period.
In a recommendation, the court said it accepted Eason was experiencing "severe difficulties". Management representatives from Eason told the court it was reviewing its cost and structures to address those difficulties.
While the court accepted the Christmas bonus was an "integral part of the conditions of employment", it said its payment should be deferred until the business review was completed in the first quarter of next year. However, it added: "The court does not believe that it should recommend non-payment of the bonus per se."
Eason had previously proposed its 1,500 staff take a 12.5% pay cut. However, it said last month that it has withdrawn from pursuing the pay cuts.