IRISH Life said it would proceed next week with its disciplinary hearings against sales representatives who have refused to accept redeployment and has warned that staff would face dismissal.

The disciplinary hearings had been postponed to allow a meeting of the sales representatives to take place earlier this week. The meeting voted to reject a compromise for mula to try to end the dispute, which has been brewing for a month.

With both sides now so far apart, a strike, which would be very damaging to Irish Life, has come a step closer.

Irish Life wants to redeploy 420 sales staff, known as personal finance advisers (PFAs). Last night Irish Life warned that continued refusal to co-operate with new structures twill inevitably lead to dismissal". It said the rejection has led to a situation of utmost gravity Irish Life said the decision had introduced an unsustainable situation into the field force. "The PFAs are insisting on working in structures which no longer exist.

"In many cases there are no managers in charge of teams and this situation cannot persist," it added.

The compromise put forward earlier this week included the PFAs joining the new structures while more negotiations took place this month. If no final agreement was reached by the end of August, the issue would be referred to the Labour Court.

These proposals were rejected by an overwhelming majority of the sales force at a meeting yesterday, although their negotiating committee from the MSF union, had recommended them.

MSF Irish secretary, Mr John Tierney said last night that they had been rejected because there was obviously a deep distrust of management. He said the union was still available for talks, but people felt the company was trying to railroad them into new work practices.

He said the management sales force had had 24 meetings with the company to negotiate new contracts and work practices, but sales representatives only had 10.

He said that procedures for negotiations had not been exhausted, but the style of management was that people should do what they were told and not ask questions.

He said the field sales force had no confidence in management anymore.