IRISH Life will move within the next week to protect its business and income in the light of its continuing dispute with its sales force, according to the company. Options being considered include the appointment of new sales staff and arrangements for collecting arrears due to the company.
As the branch committee of the MSF union, which represents the sales force, meets today in Portlaoise, Irish Life is assessing its options in the belief that the sales force may not return to work for some time.
Following last week's overwhelming rejection of Labour Relations Commission proposals to settle the dispute, the company said it was now finalising plans for collecting arrears owed by customers on insurance policies and for generating new business.
With 320 sales staff suspended for nine weeks in the dispute about new work structures and practices, the company estimated the net cost so far in terms of lost profits at between £1 million and £2 million. The net figure is based on the loss of potential new business and the loss of' income on uncollected arrears, less the savings from not paying the salaries of sales staff.
According to the company, the sales force accounts for about 18 per cent of annual sales, generating sales of about £20 million. In a strong business climate the company is concerned about the loss of potential new sales if the dispute is prolonged. Among the options being actively considered is the appointment of new sales staff.
Shortly after the MSF members were suspended, Irish Life advertised for sales staff for its home services division. Interviews have been held. Irish Life was now considering appointing some of those interviewed to ensure that potential business was not lost, the spokesman said.
While most of the premium income from policies already sold continues to flow into Irish Life in direct debits and standing orders, some was collected directly from customers by the sales staff weekly or monthly. About £3 million of arrears have built up over the nine week period. Arrangements to collect these arrears are now imminent.
