Glasgow’s Centre for Contemporary Arts (CCA) has cut ties with its business tenant, Saramago Cafe Bar, following a staff dispute over working conditions at the cafe.

In a statement today, the CCA said it was discontinuing its relationship with Saramago and confirmed that the cafe bar would close “with immediate effect”.

It comes after Saramago was accused of firing three members of staff in the middle of their shifts on 3 March for taking part in union-endorsed strike action in protest against staff shortages.

The cafe’s owners have strenuously denied this claim, saying the staff members in question had taken part in an “unannounced” work stoppage in breach of their contract. The owners also said that the union supporting the strike, Industrial Workers of the World, was not a recognised body in the UK and that the strike broke union guidelines.

The cafe has been closed for more than three weeks as a result of the dispute. A number of demonstrations have taken place outside the venue since the staff were sacked.

“CCA has worked tirelessly over the past five weeks in the hope for productive conversation and a positive outcome that aligns with our organisational priority of fair work. We truly wish the situation could have been resolved differently,” said the CCA’s statement.

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“The impact this situation has had on our artists, programme partners and our own staff has become untenable. It has affected our ability to serve our audiences and fulfil our commitments to our partners.”

The arts centre said the dispute had come at a time when cultural organisations are facing significant pressure, and that it had chosen to prioritise the health of its arts programme and wellbeing of staff.

“We recognise the gravity of this decision, and are committed to acting in the most accountable and considerate way possible. We understand that this decision will affect people's lives and livelihoods, and will ensure that the transition is handled with sensitivity, conducting all necessary due diligence,” said the statement.