SHARES in Irish Life fell 5p to 271p yesterday as the company moved towards suspending its sales staff, writes Mark Canniffe. In a highly competitive market investors are concerned about the impact of prolonged industrial action on the sales of Irish Life products.

Irish Life was adamant yesterday that it will proceed with the suspension without pay of sales staff from Monday. It expects to suspend up to 100 workers that day with the remainder of the 320 sales staff, who are members of the MSF union, to be suspended by Wednesday of next week.

The move follows the rejection of a Labour Court recommendation on new sales structures by a large majority of MSF members. The changes would cost about £1 million in training, new technology and compensation.

While a Labour Court hearing last August found that Irish Life had no right to suspend its sales staff, the spokesman said a disciplinary process, which allows suspensions, has since been agreed with the unions.

The company is seeking a meeting with SIPTU to "clarify" the position of the 40 sales staff who are members of that union.

MSF official Mr John Tierney said that he would treat the dispute as a lock out if the suspensions went ahead. He is arranging a meeting of the coordinating committee representing all its members at Irish Life to discuss strategy. A key issue is whether the administration staff will support the sales staff.

"If they carry out the suspensions we will have a uniform and agreed strategy and it will not be the old textbook trade union approach - it will be a lot more imaginative," warned Mr Tierney.