We are transferring Australian transaction processing activities to our global shared service centres as part of the firm’s strategy to leverage our global scale. As a result, a number of roles will move to our Dalian office in China.
To the lay observer struggling to decipher the corporate gobbledegook – a “strategy to leverage global scale” – we invite you to consider the most popular article on EY Australia’s website, entitled Asian Agenda, which states that China:
has long been seen as a source of cheap labour and raw materials, offering the potential for highly competitive operating costs.
Yep, EY Australia is sacking Aussie workers because it can source cheap Chinese labour. No real surprises there. But we received the following comments from an anonymous EY spy on Friday, shedding more light on the size of the group to be affected by the cheap labour strategy:
Whispers around EY today that several dozen staff will be sacked from advisory in the next few weeks. Apparently the group is performing about as well as the Costa Concordia.
Costa Concordia indeed!
Although … Ernst & Young recorded revenue of $1.052 billion in FY 2010/11, recording a massive year-on-year increase of 14.8%. Indeed, the impetus for sackings seems hard to justify when such fantastic financial results are recorded. But apparently all hope is not yet lost for the affected workers - the firm stated:
Ernst & Young is assisting our people affected by this transition to look for alternative positions within the Australian firm. If suitable positions are not available, an appropriate package will be offered.
EY’s response to volatile economic conditions – a mixture of internal tranfers and forced redundancies – is to be contrasted with the approach taken by rival firm KPMG. In October, KPMG offered voluntary redundancies and extended leave on 30% pay, purportedly in an attempt to drastically reduce the headcount of its Trasaction Services Team.
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Any news on the 2012 EY grad starting date being delayed?
And all this after a multi-million dollar ‘summer school’ (i.e. junket)for all advisory staff! 4 nights, all expenses paid at one of three rather nice resorts on the gold coast – complete with apparences by Rove McManus, Thirsty Merc and endless booze for 1200 staff.
Talk about a beat up!
The off-shoring of the roles for transaction processing aka the people that do expenses has been in the works for years and was announced ages ago as part of the long term strategy
Thirsty Merc was great and the booze even better!
But in all seriousness I agree with anon 3, this is a bit of a beat up.. summer school was fun sure but there was over 25 hrs of technical training.. Hardly a junkit.. We work hard and we are rewarded for it.
This is just one of the reasons why I love my job and my firm.
Neil Plumridge is a modern legend who brought together the whole of Advisory for a fantastic learning experience coupled with Thirsty Merc and Rove McManus. He’s my hero.
After the Partner Conference in November which was held in Singapore, which I’m sure cost millions of dollars, coupled with the fact that the Partners are ridiculously over paid, shame on Ernst & Young. They are an absolute disgrace.