AFR legal affairs editor Alex Boxsell and deputy legal affairs editor Rachel Nickless, both excellent journalists, reported the following on 31/7:
Clayton Utz and Freehills are now in an exclusive club of two – being the only large national law firms
yet to introduce formal redundancy programs following the announcement this week of Mallesons’ voluntary redundancy program.
Clayton Utz "Chivas Regal"
We will report on the accuracy of this comment in relation to Freehills later in the week, but so far as Clayton Utz is concerned, well, the Firm Spy thinks that the firm is shredding splitting hairs.
Moreover, we first reported in February the claim that Clayton Utz had made 9 lawyers redundant from its Sydney practice. Then, in July, we reported the allegation that Clutz had ‘cut at least 5 grads and denied 1 grad a LOA‘. No redundancy program?
Later in the AFR article, the following is noted:
Clayton Utz Chief Executive David Fagan said the firm was neither planning nor has had a firm-wide redundancy program, although last month he said 13 lawyers and a handful of support staff had been let go through the course of the economic downturn.
In terms of redundancies that we’re aware of, assuming the rumours we have heard are correct, Clayton Utz has sacked at least 27 lawyers, sacked a “handful” of support staff (let’s say 10), and denied 1 grad a leave of absence. That’s 38 workers! When Minter Ellison shed 34 staff there was a media announcement. When Corrs laid off over 20 (approx) staff there was an announcement. When Blake Dawson sacked 89 staff there was an announcement.
At what point do tranches of redundancies become a coordinated scheme, rather than an uncoordinated Clutz ad hoc sacking spree? How many sackings warrant an announcement? We invite your comments below.
To add insult to injury, the following is noted in the AFR article:
Mr Fagan said the secret to Clayton Utz’s success had been the spread of work among litigation…government and major projects, which had compensated for the reduction in corporate work. Revenue at Clayton Utz was up $23million in the 2009 financial year and ‘…certainly the signs for the new financial year are quite promising,’ Mr Fagan said.
This sounds like the sort of claytons ‘downturn’ that warrants employee redundancies, not to mention a firm-wide pay freeze and involuntary leaves of absence. Non-alcoholic beverage, anyone?
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