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97 Royal London staff axed over new pay deal

Home-service life office Royal London has sacked 97 of its salesforce for

refusing to sign new contracts replacing commission payments with

performance-related pay.

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 be dismissed. A

number have been dismissed and appeals are pending.”

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