IRISH Life's directors have come under heavy fire from shareholders about the company's treatment of staff and customers.

Angry shareholders, some of whom are also employees, launched a strong attack on Irish Life chairman, Mr Conor McCarthy and the board of directors at yesterday's annual general meeting in Dublin, accusing them of providing a poor service and of demoralising the company's staff.

Shareholders also complained about the disappointing surrender value of the group's policies, and said they had been subjected to inefficient and discourteous treatment from some staff.

Mr McCarthy apologised "profusely" to customers who had not received an acceptable level of service from Irish Life.

"We have not been as focused on customer service as we should have but we are totally committed to improving this," he said. A reorganisation of Irish Life's sales team, currently under way, would ensure "excellent" service once completed, he insisted.

However, a number of staff affected by the reorganisation accused the company of no longer caring about its workforce. One shareholder and employee, Mr Liam Lawlor, told the meeting he was now "seriously concerned" about the direction in which the board was taking the company.

Mr Lawlor warned the board it was equally important for the company to take care of its employees as well as its customers.

He said a staff survey carried out by Irish Life's chief executive in Ireland and the UK, Mrs Jean Wood, had clearly shown that the company had "serious staff problems".

The company had also behaved "appallingly" in the way it told employees they were to lose their jobs as part of a major reorganisation of the group, he said. "Thirty sales managers who have given their lives to the company, moving their families and homes as required, got a call on a Friday night to meet their manager in a hotel bar or lobby to be told that their jobs were gone, Mr Lawlor said.

Mr McCarthy, however, dismissed Mr Lawlor's comments, saying that the annual general meeting was not the "forum" for discussing industrial conduct. "Change always causes problems," he said, but added he was satisfied that the level of goodwill on both sides could achieve a "fair and just solution" for the vast majority of people working in Irish Life.

Mr McCarthy stressed that the board was fully supportive of the reorganisation being implemented by Mrs Wood. "We back Mrs Jean Wood 100 per cent in her changes at the company.

Shareholders continued in their criticism, nonetheless, warning that "something has to change". One said it was a "disgrace" that employees had to come to the annual meeting to get a hearing and asked the chairman and board to give a commitment to meet disgruntled employees.

Mr McCarthy responded that, while he had "no problem" in meeting these staff, he felt he may not be able to satisfy them.

A group of shareholders unsuccessfully opposed a motion to approve the remuneration of directors, with up to 30 people voting against it. Ms Mary Gill criticised the increases being paid to directors, particularly in view of the poor surrender value of the group's policies. "We can't afford obscene salaries," she said.

Shareholder Mr Gus McGrath called on the management to accept cuts in the same way that its staff had.

About 10 shareholders at the meeting also voted against the reappointment of Ms Wood as a director of the company. However, the motion to reappoint her was carried.