Some staff want industrial action

Some staff members at the Irish Life home service business have voted to take industrial action in relation to the sale of the business to Royal Liver.

What action might be taken by the 16 SIPTU home services representatives has yet to be decided. A spokesman for the group said they wanted to be offered a severance package. At present, he said, they were being offered the options of becoming employees of Royal Liver, or resigning.

The bulk of the employees in the home service section are represented by MSF. It is understood some of these workers have accepted the move to Royal Liver, while another grade has yet to vote on the issue.

Some of the workers, who collect life assurance payments from people's homes, have objected to the details of the deal between Irish Life and Royal Liver, alleging that the deal involves policyholders' funds being transferred to Irish Life.

"The fact of the matter is that the fund belongs to policyholders," said one representative. "If there is a surplus, it should be distributed among them."

The net value of the Industrial Branch Fund, the policyholders' accumulated fund, was €494.5 million on December 31st, 2000. However, Royal Liver said the transaction would add an estimated €300 million to its funds under management.

The exact figures will not be clear until the date of the transaction but Irish Life has said it is being paid €23.5 million for the business or its "infrastructure and operating assets" and approximately €150 million which must be left with Irish Life under the requirements of its solvency support requirements. This latter amount was a part of the policyholders' fund which was already marked as providing solvency support for overall life assurance business held by the company.

The deduction of the two amounts from the size of the fund means the net addition to the Royal Liver funds under management will be in the region of €300 million. A spokesman for Irish Life said Royal Liver would assume all existing liabilities and the decision as to how it would pay for the deal was a matter for it. The case currently before the High Court involves the court having to decide, based on a report from an independent actuary, that the transfer of the industrial branch funds would not involve any reduction in the position of the policyholders. If it is not so satisfied,then the deal may not be approved.