Dunnes Stores has appointed its first personnel director who, among other responsibilities, will take direct charge of industrial relations in the group

Mr Diarmuid Ryan, joins the board from Pepsi Cola International, and his appointment means that, for the first time, the members of the Dunne family are in a minority on the board.

Mr Ryan (46) is leaving his position as director of international resourcing and development with Pepsi. Before joining Pepsi, he worked with Intercontinental Hotel Corporation.

According to Dunnes Stores, the appointment is an important step in the process of developing the company's personnel practices, which "are central to its business plans".

In addition to industrial relations, Mr Ryan will also take responsibility for staff and management training and recruitment.

The board now consists of only two members of the Dunne family - Mrs Margaret Heffernan and Mr Frank Dunne - and three non-family members, Mr Ryan, Mr Dick Reeves and Mr Andrew Street.

It is expected that the board will expand further over the next two years.

A spokesman for Dunnes Stores said Mr Ryan had dealt satisfactorily with unions at Pepsi International and his appointment was part of the "changing face" of the company.

Yesterday, the general secretary of Mandate, Mr Owen Nulty, whose union represents most Dunnes Stores workers, said he did not know Mr Ryan but was hoping to meet him "as soon as possible".

Mr Nulty said he expected Mr Ryan would operate agreed industrial relations arrangements in Dunnes Stores, which included going to the Labour Court as a last resort.

The next major industrial relations issue likely to face the company is the impending Labour Court recommendation on Christmas trading. The company and Mandate are in disagreement over pay for workers on Sundays during Christmas.

The last major strike in Dunnes Stores last September, was estimated to have cost the company £2.5 million over two weeks and some market share.