Irish Life to meet unions over Labour Court recommendation

IRISH Life management and the union representing 400 sales staff will meet tomorrow following a Labour Court recommendation on…

IRISH Life management and the union representing 400 sales staff will meet tomorrow following a Labour Court recommendation on the long running disagreement over new sales structures.

The court recommended that Irish Life improve its offer to sales staff to resolve the dispute. But the Manufacturing Science Finance Union (MSF) said the recommendation "ignored the whole issue of change". A union spokesman said he was not optimistic that members would accept the recommendation.

Irish Life said it was weighing up the financial implications of the court recommendation on the dispute with its 400 personal financial advisers (PFAs).

The Labour Court recommended that the company increase the lump sum payments and commissions offered to personal financial advisers to get agreement for a major rationalisation of sales structures. The planned rationalisation involves the streamlining of management and the introduction of new sales structures and new incentive arrangements.

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The union sought compensation for loss of commission income of four times salary or £40,000, whichever was the greater, for PFA's who opted to transfer into a new home services division. The company wants to set up this division to provide financial services and products to lower income families.

The Labour Court accepted that Irish Life "must change its method of operation in order to be competitive". But it warned that "account must be taken of the uncertainty felt by the employees affected given the extent of the changes". The company wants sales staff to work in teams and on a bonus related rather than a commissions related basis. Sales staff fear that the changes will damage their earning capacity and leave them without management support in the sales field.

The court recommended that terms offered by Irish Life at a conciliation conference on November 18th be increased as follows:

∙ the gross payment of £1,500 after six months proposed for PFAs who opt to transfer into a new home services division be raised to £5,000 - the company wants to appoint 40 people to the new division;

∙ the extra 10 per cent commission for three months on business from January 1st be increased to 20 per cent and the additional 5 per cent offered for a further six months be increased to 10 per cent;

∙ any PFA who opted to work in the home services division and "fails despite his best efforts to make the grade" should be able to go back to being a PFA when an appropriate vacancy arises.

. the 1997 increments for PFA's to be based on all sales since appointments (1993) - the company wanted to base the payments on business written in 1995 and 1996.

∙ a bonus of £400 on completion of insurance exams - the company offered £300 while the union sought £1,000.

In an intensely competitive life assurance market - Irish Life will not announce its 1996 premium income figures in March but the banks and some other insurers have already reported strong growth in sales - the company is moving to increase its efficiency and flexibility.