Home-service life office Royal London has sacked 97 of its salesforce for
refusing to sign new contracts replacing commission payments with
The company told its salesforce to agree to the contracts or it would
terminate their relationship in a bid to wean staff off commission.
Basic pay has been increased from £11,000 to £17,000 and a system of
variable pay has been introduced. Royal London says pay will be based on
the quality and not just the quantity of business written.
The MSF, the union representing the sacked staff, says its main grievance
is that Royal London has told staff that a failure to write £45,000 in new
paid-up business each year would mean the sack.
Staff are also concerned that to qualify for variable pay they need to
write an additional £5,000 while the number and severity of complaints
received will also be taken into account.
The MSF says the new sales process could mean a reasons-why letter taking
up to eight hours to produce because the staff operate door to door.
Royal London head of corporate communications Stephen Humphreys says: “We
made it clear if they did not sign the new terms they would