Thomas Cook and staff formerly employed in its Ireland branches have reached agreement two weeks after a bitter dispute broke out over redundancy payments.

Both parties settled last night after 10 hours’ negotiating at the Labour Relations Commission (LRC) in Ireland.

They may have shaken hands on the deal but they remain unable to agree – this time on whether the offer is an improved one or not.

TSSA general secretary Gerry Doherty said: “I am extremely proud of our members at Thomas Cook who secured a better deal by their determination to stand up for their rights against a multi-national company.”

But according to a Thomas Cook spokesperson, the settlement will cost the company the same as the original offer that was on the table before the dispute kicked off.

Thomas Cook UK and Ireland chief executive mainstream travel Pete Constanti said: “Despite the recent illegal actions and behaviour of staff, and the TSSA union, we continue to recognise the impact of redundancy on our staff.

“With that in mind, we have honoured a redundancy package based on five weeks of pay per year of service. This equals the value of that which was offered prior to the unofficial action, and the illegal occupation of the Grafton Street store.

“We have always believed that this offer is generous when compared to similar redundancy payments being made in the current economic climate at a time when many employers are paying only statutory redundancy.

“We now hope our people are able to move on and accept the recommendations of the LRC.”