THE idea of rejecting a Labour Court recommendation is anathema to Mr Willie Holmes of Irish Life. He is in charge of the company's field staff or sales force. The company accepted the recommendation even though it added an extra £0.5 million to the costs of its restructuring package.

"The Labour Court spent four weeks examining our proposals and the unions arguments. It deliberated carefully. It was not a quick decision. Both sides referred the issue to the court. The court clearly recognised the need for changes. There were no caveats. The Manufacturing Science and Finance union, (MSF) didn't like the outcome," he says.

He accepts that the Labour Court told the company it must take account of the uncertainty felt by the employees affected, given the extent of the proposed changes. But he argues that the Labour Court addressed these concerns by "putting a £1 million price tag on the changes".

The changes in sales structures and practices are the very least Irish Life needs to remain competitive in a rapidly changing marketplace, according to Mr Holmes. Customers are demanding changes in the way business is done, he says. Asked why the salespeople who are the company's main contact point with customers seem to be so resistant to the changes, he says that they do not seem to be aware of how critical the changes are and how much they can benefit from them.

"They don't seem to realise how much salesforces in other companies have changed and that there have been major changes in headquarters which have resulted in significant reductions in costs. The sales force has lagged behind. We are very disappointed. We regret having to suspend staff. Perhaps there is not an air of reality out there. The changes are needed for the sales force to remain competitive," he adds.

Unions statements on fears about job security are "playing it up, clouding the issues", he suggests. That issue was not referred to the Labour Court, he points out, adding that trying to force people out was not on the company agenda at all.

But Irish Life is not prepared to give guarantees about job security. "No company can do that. But we have jobs for everyone. We have customers to service. We are not trying to make people redundant. We want people to make a career choice based on their individual strengths. We will give them the training and development to make a good career," he says.

It is wrong to suggest that Irish Life has not been negotiating over the last 15 months, Mr Holmes argues. "We have been negotiating, very much negotiating. We took things off the table in an attempt to get agreement on the changes. Last week we added in £0.5 million on top of the £2 million already committed to training and new technology to get a peaceful settlement", he states. Things removed from the negotiations included changes in the rate of pay.

Mr Holmes rejected union-criticism of the company's products and investment performance. "Our products are among the most competitive on the market in lots of areas and our sales show that. It is only in the field area that sales are falling. We are always striving to improve our investment performance. But the products the Personal Finance Advisers, (PFAs) are selling are not focused on investment performance specifically. Tracker bonds, for example, are guaranteed, so is it a problem with the salespeople or the products?"

The changes Irish Life wants to introduce are extensive:

(1) The current sales operation of 400 personal financial advisers will be split into three divisions: home service, personal financial consultants, and personal financial advisers. Personal Financial Advisers (PFAs) sell a full range of life and pension products to retail customers and collect premiums from home-based customers who cannot pay by direct debit.

(2) Some 40 PFAs will become home service representatives: they will sell only to householders and will collect premiums on a door-to-door basis. Home service currently accounts for about 15 per cent of Irish Life's business and expects this to suit the lower earners on the PFA team. Their salaries will be maintained at their current levels and new premium collection and sales bonuses should offset the loss of commission income as PFAs, Mr Holmes says. The union argues that the total income of the home service staff will fall and is seeking compensation of four times salary. Typical earnings in this category are a salary of £12,000 per annum and an average bonus of about £6,000, Mr Holmes adds.

(3) About 30 PFAs will become Personal financial Consultants (PFCs) selling pensions and personal finance products but will not collect premiums from households.

(4) The remainder of the salesforce, about 330 people, will remain PFAs who will have a dual role selling pensions and personal finance products and serving homes. Average annual earnings would be about £25,000 made up of a salary of £10,000 to £12,000 and commission of £13,000 to £15,000.

(5) New technology: the company wants the new home service staff and the PFAs to use hand-held computers which will allow accounts to be updated directly into the mainframe computer at headquarters and can store information about products and client requirements.

(6) New Work Practices: the company wants each PFA to have a weekly planning meeting with his/her manager-giving the managers information on the business calls planned for the week. It wants each PFA to carry out a "fact find" before a sale is made - this involves building up information on the client so that the salesperson can identify with his needs. The PFA then will have to make a written recommendation to the client.

Mr Holmes says this work practice change is based on the company's belief that the customer must be sold the right product for his/her needs. "We believe that by putting the customer first he/she will buy more and will buy more often. There is evidence from Britain where fact finds are in operation that this happens. Salespeople there get higher premiums and a higher slice of the customers wallet. Pilots carried out in Dundalk over the last two to three years bear this out, he says.

He accepts that it will take longer for a salesperson to complete each sale but argues that satisfied customers buying more products and more often would adequately compensate. Staff will get full training in products and systems to operate the new sales practices, he said.

(7) Changes in Payment Practices: administrative changes in the way salespeople are paid including payment 12 times per annum instead of the current 13. Mr Holmes says management and the union could discuss this issue at a "workshop" to see how the changes could be implemented taking account of the unions concerns about its members cashflows.

Mr Holmes insists that after 15 months of negotiations "the ball is now in MSF's court. I hope MSF will reconsider its position. The company would be happy to implement the Labour Court recommendation with the union's cooperation. But the changes will have to go ahead. It is just too critical to delay any longer," Mr Holmes concludes.