IRISH Life has lifted its threat to dismiss sales staff who are refusing to comply with new work practices. The move follows a proposal by the Labour Relations Commission (LRC).

More than 30 staff were due to be fired this evening, following disciplinary hearings. However, the company agreed to withdraw the dismissal notices as part of the LRC's initiative to break the deadlock in the long running conflict.

The commission has proposed that the 420 field sales staff, known as PFAs, work to new managers but retain their old relationship with them. The PFAs will vote on the initiative at a meeting in Portlaoise on Monday.

The LRC's formula is designed to give breathing space to management and unions who have been involved in long and tense negotiations over Irish Life's plans to introduce the new work practices.

If accepted, both sides will negotiate the complex details of the company's proposals, which include changing the working methods of the field sales force and the way they are paid.

It is understood that the LRC formula allows for five weeks of discussions. These discussions must take place in good faith" and there is a mechanism for the LRC to intervene if it is felt one side is not making a genuine effort.

If the issues cannot be resolved within this period, then both sides have agreed to refer the matter to the Labour Court.

The LRC has asked that the initiative be put to the PEAs without a recommendation.

Mr John Tierney, the national secretary of Manufacturing, Science, Finance (MSF), the union which represents the majority of the PEAs, yesterday welcomed the initiative.

He said the LRC had put a lot of hard work into it and he would be asking his members to take into account the role the independent, third party" had played in devising the initiative.

An Irish Life spokesman said that the LRC initiative preserved the negotiating position of both sides and allowed normal working relations to resume during the period of discussions.

He confirmed that the dismissals procedures would be resumed if the LRC proposal was rejected. However, he stressed that the company hoped this would not happen.

"We hope that people will realise that it does not jeopardise either side's position," he said.

Both sides agree that the LRC formula allows for an opportunity to stand back from the dispute so that the fibre complex elements of the company's proposals can be negotiated.

For the PFAs, the issue of the relationship they will have with their new managers is a very important one.

The number of managers has been greatly reduced under the plan to radically overhaul its insurance business. The PFAs feel they will lose the traditional support of their managers.

From the company's viewpoint, the initiative, if accepted, will mean all PFAs will be working again, more substantive negotiations can take place and the dispute will be taken out of the public eye.

The dispute, which Irish Life acknowledges has been damaging for the company's image, began some months ago.

A formula which was previously recommended by the PFAs' negotiating committee was overwhelmingly rejected two weeks ago. Talks took place last Friday but broke up with no resolution.

The LRC offered its services and more than 20 hours of discussions took place this week.

The breakthrough came alter industrial relations officer, Mr John Agnew, put the initiative to both sides late on Wednesday evening and asked them to consider it overnight.