The Labour Court has dismissed a SIPTU claim against Gresham Hotels for a €1.65 million bonus payment to 330 former staff at three properties the group sold earlier this year.

But the union last night signalled that it would consider bringing the issue back to the court if the workers refused to accept a much smaller goodwill payment since offered by the Dublin-listed company.

SIPTU had been seeking the payment for workers at the Ryan Hotels in Galway, Limerick and Killarney, which Gresham agreed to sell to Choice Hotels for €35 million in June.

The issue went to the Labour Court last July after talks between both parties failed to reach a resolution. However, it emerged yesterday that the court had not recommended the claim.

Its ruling stated that making such payments was not normal practice in the hotel industry. However, the court noted that Gresham had said it would make a goodwill gesture to the workers. It called on both parties to resume talks immediately to "quantify" this.

The union based its claim in part on the fact that Gresham paid €5,000 each to workers at the Royal Marine Hotel, Dún Laoghaire, Co Dublin, when it was sold and leased back by the group.

Both sides confirmed last night that they had met to discuss the goodwill payment. Gresham group operations director Mr Paul McCracken said the company had offered to make a contribution to the workers' social fund. He said no amount had been fixed, but added it would be "nothing like" the €5,000 payment made to Royal Marine workers. "We just couldn't afford that," he said.

SIPTU's branch secretary, Mr Jack Nash, said the union had put the proposal to the members involved and was waiting for their decision.