You’ll recall in December 2009, as staffers were anticipating a Christmas bonus after the firm’s grossly unpopular pay freeze Mr Milliner famously stated that:
recovery was not likely in the medium term.
At the time, it was difficult for overworked and underpaid juniors to digest Mr Milliner’s claims – the firm had posted a FY revenue increase of 1.5% just a few months beforehand. This was especially the case because at the same time Mr Milliner was making his farcical economic forecasts, CEP of Freehills Gavin Bell observed that the “trend was up”.
One year later and the story was the same. We surmised in 2010 that Mallesons was in an excellent position to deliver excellent pay rises to staff because it:
- had streamlined its firm to such an extent that it reported 44% profit margin in 2009;
- had less partners than its major competitors;
- had less staff than its major competitors; and
- had the highest revenue of all Australian law firms.
History shows that Mr Milliner opted for the tightwad option – Mallesons increased its profit margin to 46% and staff felt like the partnership was mocking them. Said one:
Firmspy, you simply cannot understand the extent of the anger and resentment felt by the victims of this unjustifiable exercise in partnerly flipping-the-bird.
So it is now 2011, it’s time for pay rises, and guess what? … Spin-doctor tightwad Robert Milliner is again on the phone to the media talking down the state of the economy to justify this year’s pay review:
AFR (24/06):
Mallesons Stephen Jaques chief executive partner Robert MIlliner said there had been definite signs of economic recovery since the 2009 and 2010 downturn years, but “I don’t think the recovery has been as strong or consistent as we all hoped towards the end of last year.”
AFR (1/7):
Mallesons CEP Robert MIlliner said there was an element of “generational change” as well as “optimism about economic growth” to recent increases [in partnership sizes in the market], but there was cause for caution. “There is very little information around that would support that the market is going through a very buoyant or high-growth period,” he said. “There will be firms that are looking to bring through people with a capability that they did not have before. But I think you’ll find that there is a certain amount of turnover in firms and a certain amount of renewal… We believe that we understand how we are going to chart the choppy waters ahead … And success will be how well one executes on all of those plans.”
Plan #1 – Screw staff on pay for the 3rd year in a row?
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Cheap and nasty is the only way to describe MSJ – law students, stay the hell away.
Another Financial Year and another negative rant from Milliner. Nothing new there. Not only should Grads steer clear, but so should clients as I have no doubt hourly fees went up AGAIN.
Of course, you didn’t work hard enough, took holidays, performance could have been better….. Heard it all before and will hear it all again.
Next year it will be his replacement claiming the same rant whilst the greedy partners and directors take more home…
I had to laugh when I read this article. They have been using these excuses literally for years and years to justify not giving staff proper pay increases.
The sad thing is though that most of the lawyers probably won’t be phased by this. Their level of stockholm syndrome is so deep that they’ll probably agree with everything Milliner has said and continue toiling away for a salary which is way below market rate.
This is something that propsective grads should keep in mind: greed of partners, and stockholm syndrome amongst lawyers who will actually defend the decisions of partners regarding pay.
Milliner is a workaholic and was regularly the top or top few billing MSJ partners when he was practising and before that as a younger lawyer. On an hourly rate, he would have been one the most poorly paid. Someone who works as hard as he does probably has a fairly thick skin to claims from others of being underpaid.
@ AnOn – This is why they call Mallesons a sweatshop. The only people who stay on are the intense workaholics who work insane hours at the expense of their family, health/etc, and for a crap wage.