Mandate, the union representing employees of Roches Stores, failed to reach an agreement with the company that the €14.8 million deficit in the staff pension scheme will be addressed when the group is taken over by UK group Debenhams. The issue is to be referred to the Labour Relations Commission next week.

Mandate, which represents about 2,000 staff at Roches outlets throughout Ireland, said talks had stalled on the issue of pensions and a goodwill-payment for staff loyalty.

"Whilst both sides reached agreement on maintaining the existing terms, conditions and benefits for the staff under their new employers, it is imperative that both sides endeavour to reach common ground on the other outstanding issues," said Linda Tanham, spokeswoman for Mandate. "That is why we have agreed to go to the Labour Relations Commission for their assistance."

Earlier this week Roches agreed to sell most of its outlets to British retailer Debenhams for €29 million. The majority of Roches's 2,000 staff are expected to be taken on by Debenhams, and the union yesterday successfully sought confirmation from the new company that it would adhere to the current terms of employment held by the Roches staff. According to Ms Tanham this included the use of a staff canteen, which isn't currently available to Debenhams staff, and the ability of some staff to take overtime in lieu days.

Speaking yesterday after the announcement, Ms Tanham said that Roches' pension fund was €14.8 million in deficit. She said that while Mandate was seeking confirmation that the company would cover the complete shortfall, Roches management had said they were only prepared to make a contribution to the deficit. She also said the two sides had failed to reach agreement on a goodwill payment to be paid to Roches staff for their loyalty to the group. The amount union members are seeking hasn't yet been quantified, she said, but will depend on years of service to the company.

About 90 staff who were employed at Roches's Sandyford, Co Dublin office, will likely leave the company on agreed redundancy terms.

Under the terms of the deal, Debenhams has acquired long-term leases on nine of Roches's 11 outlets, including Dublin's Henry Street store and a prominent outlet at Patrick Street, Cork. The other leaseholds are at Blackrock, Tallaght and Blanchardstown in Dublin and at Limerick, Galway, Waterford and Tralee, Co Kerry.

The talks will resume at the Labour Relations Commission on Wednesday.