The transfer of Tesco's transport and haulage contracts for its Donabate distribution centre to a UK-owned company has been completed following the resolution of a union dispute.

The Labour Court had made a recommendation that affected employees should be paid €5,000 to compensate for the loss of a 'save as you earn' scheme and staff discounts and that this should be settled before the transfer of contracts took place.

A spokesman for Tesco would not be drawn on whether the Labour Court's recommendation had been implemented; however, he did confirm that the contract transfer had taken place.

Tesco had signalled its intention to transfer the €13m in contracts to Stobart Ireland in October, however, the deal was delayed when negotiations with Siptu representatives broke down and the matter was referred to the court.

Meanwhile, Tesco's efforts to expand in Ireland were hampered last week by the rejection of its application to build the island's biggest Tesco supermarket at Banbridge in Co Down.

The North's planning appeals commission turned down an appeal against the rejection of its plans to build a 130,000sq ft Tesco Extra at Bridgewater Retail Park in Banbridge by the minister for environment Sammy Wilson.

Had it been given the go-ahead, the outlet would have been Ireland's largest supermarket. The appeal had been lodged by the owners of Bridgewater Park – Land Securities Group and GML Estates.

Tesco has permission to extend its existing Banbridge store by 60,000sq ft but it is unclear whether it intends to do so.