We may have missed the scoop on the Freehills ‘two-tiered’ pay-freeze thaw (a major report on Freehills will be posted tomorrow, so check back for more on this), but today the Firm Spy is back where it belongs – breaking the big stories.
Thanks to the audacious work of an anonymous Minters spy we can today reveal an email sent to all staff yesterday by Minters Chief Executive Partner John Weber:
As you know, it has been a challenging 12 months for us, as it has for all law firms and our clients. Revenue for this financial year is down on the same time last financial year and while we have performed well against budgets, they were set well down in response to difficult market conditions. Despite some early signs of recovery in some parts of the economy, we are yet to see a return to normal trading conditions.
Our response to the downturn, which has included ongoing expenditure management and strong strategic focus, has helped us weather the downturn relatively well. Consistent with earlier commitments, the firm will now be conducting mid-financial year staff salary reviews.
A Minters partner hears a pay review appealThe mid-year staff salary reviews will be performance-based, will have regard to market salary data and will be completed in December (effective 1 January 2010). Given market conditions, increases will generally be modest or take the form of a small bonus. As in other years, not all members of staff will have their salaries increased or receive a bonus. Each member of staff will receive a letter notifying them of the result of their salary review. At this stage I anticipate that we will conduct our usual salary review process with effect from 1 July 2010.
The market-wide softening in demand for legal services requires us to continue with our expenditure management program. Our key challenges will be to continue to focus on our clients and to work as one firm, so that we emerge from this downturn a stronger and more robust firm.
I would like to thank you all once again for your contribution throughout the past year.
So… staff will get a letter informing them of the result of the “review”? Is there any procedural fairness? A right of appeal? Or do staff, once again, have to put their faith in the integrity of partners to “do the right thing” by them? We smell a rat John!
Excellent choice of language in relation to the subsequent pay review too: “I anticipate that we will conduct our usual salary review process with effect from 1 July 2010.” Sounds to us like John is foreshadowing that some staff could remain on the same wage for two years or longer. Oh, the anticipation!
Our anonymous Minters spy had the following comments to add:
Well played John. Performance-based salary reviews are a long overdue step in the right direction. However, will modest pay rises and small bonuses satisfy those who have been performing and are exceeding their budgets by not so modest amounts? Good luck to the firm when it sees a return to normal trading conditions. Unless the firm can do better than modest increases and small bonuses in July 2010, the early signs of an exodus will follow closely behind.
An astute observation by the spy that an exodus will follow. Miserly partners will then have to start searching for huge dollars to pay lofty recruitment fees. Our guess is that these whopping recruitment fees haven’t been factored into the alchemistic Minters “budget”.
As an aside, it is interesting to note that Minter Ellison has remained true to its word that it would conduct a salary review at year’s end, while Mallesons apparently shelved plans for a formal review and instead gave staff a paltry 3% bonus. Moreover, an anonymous Mallesons spy sent us the following comments:
When the Mallesons pay freeze was introduced it was implemented on the basis that it would be reviewed in December against how the firm was tracking against budget.
Are we to infer that the apparently broken promise to Mallesons staff can be traced to an unrealistically high budget forecast, or is this yet more evidence that a decision has been made to “buy time” to keep the Mallesons pay freeze in place?
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“Revenue for this financial year is down on the same time last financial year and while we have performed well against budgets, they were set well down in response to difficult market conditions.”
Everyone on the inside of Minters knows that is bullshit. The budgets for each division was set a year in advance, BASED ON PRE-GFC FORECASTS. Throughout the GFC, budgets remained at 6 odd hrs, and charge out rates remained steady. So when Minters says it’s met its budget, you mean you’ve met your pre-GFC budget. Amazing isn’t it! In these “difficult market conditions”.
Obviously the head honchos did not intend for the email to be circulated to the public, but come on, how many internals do you think you’ve fooled?
“Our response to the downturn, which has included ongoing expenditure management and strong strategic focus, has helped us weather the downturn relatively well.”
No shit. Taking out the Xmas party 4 years ago was a good move, Mark. It was no obvious surprise they canned the end-of-financial year function too. First they said there would be a cocktail function – then as the time got closer, they quietly shelved it without a single sound, and noone said a word – too worried about job security. A long shout from last year’s extravaganza in the Docklands hey?
The fruits went of course, a long time ago. Just as well, given that there was about 15 pieces for 40 people on each floor.
Then the pay freeze.
Then the redundancies in Sydney.
Then you hired 9 extra partners in June, amidst a covert op to sack/performance manage out lawyers across Melbourne divisions in June to August.
Now a potential thawing of the pay freeze which really isn’t much of a concession in light of the misdeeds over the last 8 months.
And somehow throughout the “difficult market conditions” the assholes at the top still took home close to $1M each. “Thanks for your help, if you’re lucky you get a pay freeze for your efforts, if not you get the sack” You remember how PwC screwed over its people in the early 1990s? We won’t be forgetting this for a long time either.
At Allens we got a mug and forced leave from 24 December to 11 January….Merry Christmas. Maybe Michael Rose will resist buying some new glasses this quarter in an effort to be seen as sympathetic to the privation of his underlings.
if, as Firmspy reports, all the top firms are having pay freezes or similar – to where exactly will those joining the “mass exodus” go? Freehills and G+T, traditionally the high paying firms, seem to be caught up in salary freezes as well.
And, as a side note, it is ignorant of C to think that when the head of the firm says “budget” he is referring to each lawyer’s 6 hours a day target – he has a whole firm to run which includes costs and income aside from just lawyers.
E, if you think those flimsy comments justify all the shit we’ve put up with over the last year, you’re a low brow and an absolute mug. What makes you think working at Minters is the only real alternative in life? I repeat, we will not forget how you have handled us in 2009. Rest assured that when we leave we will do absolutely everything in our power to repay you back the favour. With interest.
Good luck to ya. It’s game on.
C, you are right. Talk about a raw deal handed to 99% of ME staff over 2009. How do they expect to retain talent when the markets recover after the foolish choices of 2009? Waves of redundancies, shortly followed by large splurges to replace all of the coffee mugs? (This is 2 fully stocked kitchens per floor over 9 floors – not to mention client floor). Statements from the big cheese: “No Redundancies – making a steady recovery, business as normal”. Two weeks later: “Redundancies! – see you later” Shortly followed by “Great news: Shiny new mugs!” How do they expect to be taken seriously? Good luck Minters, you’re going to need it!