THE Manufacturing Science Finance (MSF) union has sought £40,000 compensation for each of its 420 sales staff in Irish Life for agreeing to redeployment in new sales teams. The total bill for the redeployment, which would exclude most of the other changes in work practices being sought by management, would be £16.8 million.

Last night, a company spokesman expressed "extreme disappointment" at the union's refusal to take up the company's offer to refer the dispute to the Labour Court.

He said that if sales staff were still refusing to redeploy in the new sales teams by the end of next week the industrial relations situation would become "very critical".

The company made its offer to go to the Labour Court during a four hour conciliation meeting at the Labour Relations Commission (LRC) yesterday. Last night, a spokesman said the company did so because "it held out the best prospect of avoiding a situation where people would find themselves in confrontation".

Earlier in the week, a threatened confrontation over the redeployment of 23 sales managers was avoided after the managers agreed to accept new posts as personal finance managers in new sales teams. It is understood that they received two years' salary, plus compensation for lost commission, in return for agreeing to rejoin sales teams.

The package was worth around £40,000, with some managers receiving considerably more. It was on this basis that MSF sought £40,000 compensation for the personal finance advisers (PFAs) with whom the redeployed managers would be working in the new sales team structure.

The Irish secretary of MSF, Mr John Tierney, said that the union was willing to go to the Lab our Court on the basis that any deadlines for the implementation of the new sales structure were removed.

"We are only starting to negotiate on a new situation at the LRC and the Labour Court would probably have a problem becoming involved at this early stage.

He said his members were still prepared to work "to their existing contracts and for their existing managers" while talks continued. If there was a dispute, it would only be because the company was pressing ahead with its own agenda.

The company says it was willing to defer implementation of any new structures until after the Lab our Court hearing. But it was clear from management sources that Irish Life was thinking in terms of days rather than weeks.

When the restructuring of sales managers was referred to the Labour Court, the company position was largely vindicated. The final package accepted by the managers last Wednesday contained a number of significant improve merits, wrung from the company during a series of confrontations that barely avoided all out strike.

This time around, the situation is further complicated by a district court decision 10 days ago, which makes it almost impossible for Irish Life to discipline staff, except by dismissal. In other words, if staff work to rule, the company must accept it or lock them out.