NEGOTIATIONS to finalise a restructuring of Irish Life's sales staff appeared to be deadlocked last night, with the company warning that it would proceed with its plans on Monday despite union opposition.

In a strongly worded statement, Irish Life said the new structure, which will reduce the number of sales managers from 74 to 45, must be implemented on Monday next.

The move follows the Manufacturing Science and Finance Union's rejection of Labour Court recommendations on the issue last Monday. MSF, which represents 90 per cent of Irish Life's workforce, emphatically rejected the court's findings on key aspects of compensation payments for sales staff affected by the rationalisation and on the conditions of pay attached to the newly created positions.

In its statement, Irish Life described the situation as "grave". Given the union's decision to reject the final proposals, the company stressed that the responsibility now rested with both MSF and SIPTU to propose a "realistic means" of resolving the dispute.

Irish Life also indicated that the company would remain available for discussions ahead of Monday's deadline, but warned that it believed it was incumbent on the company to "spell out clearly that failure to resolve the situation in the coming days will lead to the gravest consequences for those involved".

The company has arranged a meeting with MSF to discuss the dispute tomorrow. Under the reorganisation, Irish Life has already selected the 45 employees it wishes to retain as sales managers out of the current 74.

The firm has asked the others to either accept new positions or opt for early retirement if they are aged over 50.

On Monday, the deputy chairman of the Labour Court, Mr Finbarr Flood, issued his recommendations to resolve the dispute. Irish Life was urged to improve its lump sum compensation offer for loss of commission earnings.