IRISH Life faces the threat of industrial action over plans to redeploy its sales managers. The warning has come from Mr John Tierney, Irish secretary of MSF, which represents most of the company's staff.
"The union has taken every step to avoid a collision course," Mr Tierney said. "I believe the company knows this issue is coming to the brink but it does not seem to be interested."
The company wants to reduce the number of sales managers from 84 to 50. The staff involved have all been promoted from within the company.
The surplus managers would be put back selling policies, with the option of becoming tied agents of the company working on short term contracts. Irish Life is not willing to offer redundancy in case the laid off staff decided to work for competitors.
What has sparked the threat of industrial action is the unilateral decision of the company to abolish the grade of area managers, which affects 14 staff.
A spokesman for Irish Life said yesterday that the company was very disappointed that the union would put the prospect of industrial action on the agenda because of our efforts to improve customer services". He said the only recent communication from MSF had been a letter indicating it was available for further discussions, and the company would be responding to this.
MSF argues that the changes would not only mean demotions but a serious drop in income for its members affected by the changes. Sales managers receive a percentage of the commission from the overall business generated by their teams, as well as from their personal sales.
The company spokesman said the package on offer would guarantee income for redeployed staff in the first year of change.
"We can't preside over the demise of quality jobs," said Mr Tierney. "We have no problem looking at change in the context of a competitive market, but nobody in the sales force believes this plan can work. The tremendous good will of the staff has gone," he said.
Last year MSF and the company were at three Labour Court hearings, the first time they have had to take major differences to the court since 1975.
Some 300 frontline sales staff, called personal financial advisers, are supporting the stance taken by their managers. They fear that with fewer managers they will have to operate in larger teams and have less personal support and fewer promotional opportunities.
MSF has also set up a co ordinating committee which represents office staff at Irish Life as well as sales personnel. In the event of industrial action, Mr Tierney stressed, it would be in consultation with other union members with the company.