TALKS aimed at finding a formula to break the deadlock at Irish Life will resume this morning, following 12 hours of negotiations yesterday.

The meeting, between management and Manufacturing Science Finance, (MSF) the union representing sales executives, will continue at the Labour Relations Commission (LRC).

Both sides have agreed to continue the talks which were described last night as "difficult". Neither side was willing to comment.

An Irish Life spokesman said last night that he would not want to pre-empt the situation.

It is understood that the sides are trying to find a way which will enable the field sales force, known as PFAs, to work while negotiations on the various issues involved in the dispute take place.

Irish Life wants to introduce new working practices for the 430-strong field sales force, but this is being resisted.

The company wants them to report to a new management structure.

The old system has been abandoned and Irish Life says a vacuum exists as the PFAs have no managers in many cases.

The PFAs have refused to recognise the new structures and to work to new managers.

The meeting at the Labour Relations Commission (LRC) was aimed at breaking the deadlock in the dispute which has rumbled on for months.

Yesterday's talks followed the breakdown of eight hours of talks between the sides last Friday.

The company broke off those talks when it said it was going away to consider whether there was any basis for further discussions.

While management dismissed the talks as a complete waste of time, MSF said it felt it was near a formula to break the deadlock.

Last week, Irish Life began disciplinary hearings against the first of the 420-staff who have refused to comply with the new structures.

Up to a dozen staff will be let go this Friday, when their dismissal notices expire.

The disciplinary meetings are set to continue this week and up to 100 people could have dismissal notices served on them by Friday.

Ms Jean Wood, chief executive (Ireland and UK) said yesterday that the company had been left with no alternative but to instigate the dismissals procedures.

She said the company had moved the deadlines for the introduction of new working practices four times and had acceded to various requests in an effort to find a resolution to the dispute.

She said the changes were necessary for the company to respond to consumer demands and said the disciplinary hearings would continue this week.

The PFAs are being asked to accept the new practices and are being given one weeks' notice if they do not.

Ten days ago the PFAs rejected a compromise formula designed to get them back to work while various issues concerning the new work practices were thrashed out. The MSF negotiating committees had recommended acceptance.

Meanwhile, a dispute has arisen over the terms of agreement of an annual payment, agreed with a group of sales managers who opted to become corporate agents under the restructuring programme.

One agent, Mr Liam Lawlor, said they had now been advised that an £8,500 lump sum to be paid annually for five years was taxable at source.

The company was saying it was the Revenue Commissioners who had decreed this, but he claimed that when the question had arisen the company had said it would not be a problem.

This was denied by Irish Life which said at all times it had followed agreed procedures and had made it clear that the solution would have to have Revenue approval.