Two Labour Party staff are to be laid off on the orders of the party leader, Mr Pat Rabbitte, as part of a major reorganisation of the party's head office.
The two staff members are Mr Angus Laverty, Labour's communications officer, and Mr Ciaran Byrne, Labour's training officer.
They were told at separate meetings with Mr Rabbitte last Tuesday and Wednesday that their positions were "no longer required". Mr Laverty worked for Mr Proinsias De Rossa during the Democratic Left leader's time as Minister for Social Welfare during the Rainbow government.
Last night Mr Laverty declined to comment but it is believed he will seek to resist Mr Rabbitte's decision, which has caused considerable upset in the party.
Staff based in the Ely Place headquarters near Leinster House, who are mostly represented by SIPTU, met on Friday evening and "expressed great concern about this. They are looking for a meeting with Pat Rabbitte," one source said.
The Labour leader commissioned a report from consultant Mr David Kinnear over the summer on the quality of the party's internal organisation. He subsequently brought in the former head of the Labour Court, Mr John Horgan, to advise on the implementation of the plan.
The Kinnear document has not been made available to members of the party's National Executive Council, though organisational matters lie within its remit. The issue could provoke serious internal tensions when it comes before the Executive Council's next meeting on December 9th.
Mr Rabbitte's relations with some NEC members have become increasingly tense in recent months as opinion divides on the party's electoral strategy and its prospects.
Mr Laverty served on a fixed-term contract with the Labour Party until the last general election in June 2002. He did not sign another contract subsequently.
A member of the National Union of Journalists, he worked with the Gorey Echo before he joined Mr De Rossa in 1994. He joined the Nationalist newspaper after the Rainbow government left office. He resigned this position to join the Labour Party after it merged with the Democratic Left and served as the Labour Party's acting general secretary during the leadership election race won by Mr Rabbitte in September 2002. He now enjoys full labour rights, sources said.
Mr Byrne, whose contract runs until the next general election, would have to be compensated before he goes.
The party's general secretary, Mr Mike Allen, has been instructed to arrange redundancy payments for the two affected staff. A party spokesperson said last night: "I can confirm that two posts at Head Office are redundant as a result of organisational changes."
"People are shocked by the way this has been done," a senior Labour figure said last night.