The High Court has sanctioned the transfer of Irish Life Assurance's industrial assurance business to Royal Liver Assurance. The transfer, which had been objected to by a number of long-serving employees of Irish Life, is due to come into effect tomorrow.
After receiving clarification of a number of issues yesterday, Mr Justice Kearns said he was sanctioning the proposed transfer and would give his reasons for doing so tomorrow.
Earlier, Mr Brian Murray, for Irish Life Assurance, said he wished to address concerns expressed to the court last Friday that its policyholders would lose out as a result of the transfer. An employee had said Irish Life Assurance was transferring some €494.5 million (£389.37 million) but Royal Liver had stated last January the transaction would add an estimated €300 million to its funds.
Mr Murray said policyholders would not be losing out. He said the full Irish Life Assurance industrial branch fund was being transferred and Royal Liver was to pay a consideration of some €23.5 million for infrastructural and administration assets, with a further undefined payment for other assets which could be €150 million or more.
The critical fact was that there would be no change in the benefits to policyholders and Royal Liver would be in a position to meet its obligations under the policies, Mr Murray said.
The figure of €300 million reflected the position Royal Liver would be in after it had taken the Irish Life fund and paid the net consideration to Irish Life. Counsel added that an independent actuary had opined that the security and benefits of policyholders would not be affected, and should be improved, by the transfer.
Mr Murray also addressed the position of the trade unions on the transfer. The unions involved are MSF and SIPTU, which between them represent most of the estimated 130 affected employees. He said Irish Life had notified the unions regarding the proposed transfer as early as June 2001. In a letter, SIPTU branch secretary Mr John Swift said he wanted to confirm Irish Life had not entered into negotiations with SIPTU regarding the proposed transfer but, on the contrary, had presented the union with "a fait accompli".
The affected SIPTU members had voted overwhelmingly on February 22nd last to reject the company's offer to them and to take industrial action, up to and including a complete withdrawal of labour. SIPTU fully supported its members' stance, Mr Swift wrote. SIPTU had also referred certain issues to the Labour Relations Commission.
The judge also heard that a meeting between MSF and its members relating to the proposed transfer was being held yesterday.
Mr Murray said neither trade unions nor employees had any right of veto over the proposed transfer.
Mr Donal O Laoire, for three Irish Life employees, said his clients had not, until February 12th last, received any written notice of the proposed transfer although it meant their terms and conditions of employment would be radically changed. Several employees have told the court the transfer would adversely affect their employment situation, pensions, benefits and other entitlements.
Some complained they were being compelled to take up alternative employment for which they were not trained and where, if they did not meet certain performance targets, they would be subject to disciplinary procedures.
