The Labour Court has criticised the O'Callaghan Hotel Group for cutting the wages of housekeeping staff who were on the minimum wage, and has ordered that they reinstate striking workers on their old minimum wage rate of €8.65.

The row arose after the outgoing government lowered the national minimum wage from €8.65 an hour to €7.65 from 1 February.

Staff in the Davenport hotel were told they would have to sign documents agreeing to cut their pay rate to €7.80 per hour.

Five housekeeping staff who refused to accede to lowering their pay were removed from the roster, and went on strike.

In a recommendation issued this afternoon, the Labour Court said that because the employer had not provided financial information, it could not support the company's submission that the pay cut was necessary to sustain jobs.

The court noted that the company had not pleaded inability to pay.

The Labour Court was not satisfied that employees had been provided with all relevant information, or given a reasonable period to reflect or take advice.

Also the court was not satisfied that a clear procedure for resolving such disputes in a fair and reasonable way had been put in place.

The court held in light of these factors, the employers' actions were not fair or reasonable.

It was held by the court that the employees concerned be reinstated in their employment, on their contract rates of pay, with effect from the date on which they were removed from the duty roster.

The Labour Court ordered that they be paid all the monies they would have earned had they not been so removed.

The ruling is binding on both O'Callaghan Hotels and SIPTU.

The incoming government has pledged to reverse the cut in the minimum wage during its first 100 days in office.