Letter from London: U.K. Confidential
Ed. note: The legal world is much bigger than New York, or Washington, or even the United States. Welcome to the inaugural installment of “Letter from London,” a weekly dispatch from the other side of the pond. Our U.K. correspondent, Isaac Smith, will expose ATL readers to the latest goings-on in the London legal world. You can reach Isaac by email, at isaacsmithlondon@googlemail.com.
Firms in the U.S. often try to keep their layoffs nice and quiet, with instructions not to communicate with the media or the odd scare tactic… Cousins, you’re not alone.
A recent meeting between DLA Piper’s UK management team and employee reps over its stingy redundancy package got off to a bad start when London Managing Partner Catherine Usher pleaded for “ideas on how we can keep the information confidential” — words which were leaked, along with the rest of the minutes, to just about every legal news publication in London last week.
Some quick background: DLA, which launched its second redundancy consultation in January (with criteria including number of sick days taken), is paying out the statutory minimum to UK-based lawyers who get the chop. This equates to one week’s pay (capped at £350 a week) for each year’s service. By way of comparison, Linklaters is said to be offering three weeks’ pay (at the full rate, without any cap) for every year with the firm, plus three months’ notice. DLA’s US arm is also being considerably more generous.
More of the DLA minutes:
Meeting begins with Usher urging associates to stop leaking things to the press.Employee rep points out link between firm’s less-than-generous redundancy package and press leaks.
Heated exchanges ensue.
Hapless HR manager tries to pacify the crowd, but her misguided recommendations that (a) associates go out for some morale-boosting team drinks and (b) the fired ones use an “an advice line” which provides “guidance about the impact of redundancy and what to do next” only make situation worse.
Anger boils over and Usher and HR Manager set upon by frenzied mob.
Ok, that last bit may not have happened.
Addition London news, after the jump.
In other news
More job cuts at the London offices of White & Case — with around 90 lawyers and support staff set to go — and Baker & McKenzie, where between 60 and 85 employees (20-30 of those lawyers) are to be, as the American legal press likes to put it, “eliminated”.
Imagine if losing your job did actually entail full elimination.
Just a thought.
I’d rather be frozen. That way, I could be de-thawed about ten years from now and walk the post-depression landscape untouched by the ravages of time, energetic, thrusting and ready to rake in bucket loads of cash.
This philosophy may explain why associates at Ashurst and Simmons & Simmons are not complaining too loudly about their pay freezes, announced last week following similar moves by “Magic Circle” firms Allen & Overy and Freshfields. Ashurst combined its freeze with the news that it would be slashing newly qualified lawyer salaries from 65,000 to 60,000 of our de-valued, basket case pounds — probably about the equivalent of a meal for two at Sizzler / Denny’s /Carl’s Jr or whatever high-calorie institution it is which you people eat at.
What else?
More compulsory trainee start date deferrals — including headline hogging Simmons & Simmons’ decision to bundle up deferring start dates with a sponsored MBA programme (the firm is covering the course fees and providing a £15,000 maintenance grant). Plus arguably the biggest story of the week: Norton Rose’s groundbreaking four-day-week initiative / bid to extend the weekend to three days. Yay! said many of the associates writing on the message boards of London legal magazine websites. “I’d take the four-day week and develop a lucrative sideline in busking on the fifth,” wrote one breathlessly on LegalWeek.com.
Others were more cynical: “…you have to wonder whether fee-earners will be theoretically working a 4-day week, but will end up working the same hours as they do now anyway.”
Oh yeah, one more thing: Clifford Chance has withdrawn the poached eggs on the menu of its canteen, leaving fried eggs as the only egg option, reports Roll on Friday. The UK legal gossip website quotes a disgruntled insider: “Who likes fried eggs anyway? No one.” It would be interesting to get your views on this.
Elsewhere on our green and pleasant island…
Manchester is home of “soccer” team Manchester United, anthemic rockers Oasis, ‘Coronation Street’ (a long running TV soap opera which will never make it big in the US due to its highly culturally specific plotlines) and law firm Halliwells. Last week Halliwells announced its fourth — yes fourth — round of redundancies; it previously having emerged that the firm is £19.4m in debt, with its Royal Bank of Scotland loan “unusually” — according to commentators — giving the bank security over its assets.
What have we learned?
Don’t expect to pay the legal minimum redundancy and not have your board minutes leaked.
Quote of the week
From said board minutes: “Everyone is very pissed off to see their mates dumped out with nothing.”
And with that quaintly British phrase floating in your newly awakened British consciousnesses, it’s goodbye from London. Until next week.
********************
Isaac Smith is ATL’s London columnist. You can reach him by email at isaacsmithlondon@googlemail.com.
(56) Comments
Comments
first
first JD!
I wish that last part had happened!! Tear those managing partners apart!!! (just kidding, really)
First to say that London is TTT.
Usher: ...it's apparent there has been some leaking to the press, copies of documents have fallen into the hands of the press which is disappointing, and unhelpful, so do you have any ideas how we can keep the information confidential?
Employee Rep: Maybe if you didn't present such an unreasonable compensation package...
Usher: We ask you to retain confidentiality and to ask your constituents to do the same.
Employee Rep: I'm happy to ask my constituents but I know that the response will be the firm is treating us poorly so why should we do what you want.
HR Manager: I assume you mean in relation to the package on offer, but the answer to that is that the firm is in line with the statutory redundancy regulations.
Employee Rep: You have to comply with the statutory regulations.
HR Manager: Yes, and we're doing that. Shall we move onto the next point?
Employee Rep: Everyone is very pissed off to see their mates dumped out with nothing and there's a level of disdain compared to other firms.
HR Manager: We know and the partnership as a whole knows that there will be some work to build bridges at the end of the process, and there will be a number of steps taken to do that. I can only reiterate that if the firm had another option than to do this, we would do it.
Employee Rep: There is an option, raise the package.
HR Manager: The firm has made its decision in relation to that.
Employee Rep: So there's been no consultation on the redundancy package?
HR Manager: No, there's no statutory requirement to consult on the redundancy package offered.
Employee Rep: Why are we offering the package we are when DLA US are offering 3 months?
Usher: I can't speak for the US, they're a different partnership, I have no idea about that.
Employee Rep: [in response to a suggestion by HR Manager that some team drinks might improve morale] I'm astonished by that. I'm not sure you appreciate the level of anger on the floors.
HR Manager: We are very much aware.
Employee Rep: No amount of drinks and the opportunity to talk to your partner are going to compensate for seeing a quarter of your mates leaving on poor terms.
Employee Rep: This is a different climate to six months ago. The likelihood of getting another job is unlikely. The package only takes you to one month, people are at risk of losing their homes.
HR Manager: We are aware of that, and as I said, if there was any alternative the firm would be doing something different.
Employee Rep: You do have an option: raise the redundancy package.
Usher: That's not the decision that's been made.
Employee Rep: You mentioned giving help for securing alternative employment, what will that be?
HR Manager: There are various things we can do, firstly every individual has the option to use the Employee Assistance Programme provided by Lifeworks.
Employee Rep: What's that?
HR Manager: It's an advice line for individuals who've been amde redundant and they can provide guidance about the impact of redundancy and what to do next.
Employee Rep: A helpline?
Wait, wait, wait. Hold on. The legal world is bigger than just NYC and D.C.?
The Dow is up and its not coming back down.
great...now i need to worry about competing with "nervous Oxford 1st year LLB"
-nervous T-10 1L
soon to be nervous 1L sa
Do the laid off, redundant associates get to keep those cool wigs you guys wear?
uk firms are being innovative with their mandator MBAs for first years and 4 day weeks.
£350 a week for each year's service?
That means a 8th-year associate (who has 7 years of service) gets a £350 (US$490) X 7 = US$3430 of severance.
Oops, DLA.
fantastic, I was afraid you couldn't find enough bad news to report inside US borders...
Tally ho! Would anyone like tea and crumpets?
Usher has the beat to make your paycheck go flat
13, I would!
London, OnTTTario.
i aint ur cuzzin, mayte.
side note - $60-65K pounds is much more prestiguous in London than $165K US is in NYC. Granted, that is because London is a TTT, but that said, associates are relatively well off there (before they got burned by layoffs) than their cousins in nyc.
3500 sq ft and a wife, you sorry bunch of sods.
There's actually a London firm named "Ashurt?" I can't wait to see what the ass lobster commenters do with that.
who gives a sh*t? If we cared about London, we'd move there.
I wonder how the magic circle is handling their US-qualified associate layoffs...I think that they would have to (at minimum) match the best NY-firm severance packages to continue attracting top US recruits...
Hey, Brits. If you want to get rid of some dead weight on your economy, why don't you start with that Queen you guys have? There must be someone willing to do that job for less money. What about Queen Latifah? I think she's available.
Hey, we may eat at high calorie establishments, but at least we don't have a Queen.
Quinn Remains, that was hilarious. Kudos.
Dear Above the Law,
I hate the Dealbreaker ad. It is obnoxious and distracting.
1) The ad will NOT make me read Dealbreaker.
2) The ad WILL make me stop reading ATL.
The town of Ashurt banned the practice of keeping asslobsters back in the 60's. To this day the law is heavily enforced.
Hey, Brits. If you want to get rid of some dead weight on your economy, why don't you start with that Queen you guys have? There must be someone willing to do that job for less money. What about Queen Latifah? I think she's available.
Hey, we may eat at high calorie establishments, but at least we don't have a Queen.
As a T10 law student who will be summering in London this year for a Magic Circle firm, I appreciate the new feature. Thanks ATL.
Good stuff. And it's helpful to know that DLA Piper in London is a toilet.
*snap*
Usher to Employee Rep: The partnership would welcome your constituents, those not being made redundant, contribute 40% of their salaries to a pool that can be used to increase the reduncancy packages for their mates who are being dumped on the streets.
Conference room: ***crickets****
16 is the comment of the day. But that's just because I came back from Canada yesterday.
Oddly enough, I banged a goth chick in the 2hole once while visiting the town of Ashurt. That was a great trip.
*double snap*
Usher to Employee Rep: The partnership would welcome your non-redundant constituents contributing 40% of their salaries to a pool that can be used to increase the reduncancy packages for their mates who are being dumped on the streets.
Conference room: ***crickets****
Really though what a shiTTTy severance package. If the really had set upon them it would've been justifiable homicide.
*triple snap*
Usher to Employee Rep: The partnership would welcome your non-redundant constituents contributing 40% of their salaries to a pool that can be used to increase the reduncancy packages for their mates who are being dumped on the streets.
Employee rep: Now we are getting somehere!
DLA should be ashamed of itself. This reflects on DLA globally. What a miserable shitty firm.
THESE COLORS DONT RUN.
THIS IS ARE COUNTRY.
Look at the bright side, redundant associates. Now you can pursue soccer hooliganism full-time.
14 - That's Lil Jon. Usher has the voice . . . .
Thank you for playing, please try again.
Did not read past the first line of the ed. note.
Who is Isaac Smith? I like to know a man before I give sh*t what he says.
CV etc chxthxbai
For those who didn't know, busking = singing/playing instrument on the street/subway for money
20- if we gave a sh*t we would'nt let you in
I used to love eating at the Sizzler. That was fine dining at the time.
"We're complying with our minimum legal requirement; what else could you want???"
Tosser.
43 - I remember the day they turned the Rustler into a Sizzler...*sniff*...
Hey! Let's set the record straight. DLA in the US had many, many stealth layoffs starting in June of 08. People were cut off mid-week and given one month sev pay. The recent 3 month package in the US is a result of people not taking the crappy sev packages offered in 08 fighting for more. And more people in the recent round were subjected to poor performance related evaluations to make them sign and feel blessed they got 3 months- many laid off in 08 had no documented performance problems. Just lack of work.
DLA UK is one of the shittiest firms on the planet. It is simply a conglomeration of regional firms (think Uk equivalent of Richmond, VA, Allentown, PA, etc) that joined up in name only and then took over a bunch of other fourth tier firms. Their press is way above their station and it's fantastic that this episode has opened them up for the ridicule the 5 or 6 true equity partners at the firm deserve (this is not a joke - there are a handful of equity partners and the rest are salaried).
I am Michael, and I am part English, Irish, German, and Scottish, sort of a virtual United Nations.
Who cares about the English? They all sound gay and smell like Indian food.
46 has facts completely wrong. If 46 was laid off and offered only a month, that really was for poor performance. 46, get a life and stop bashing your former firm. You are pathetic.
lol at 49.
go get 'em 49! AND talk about taking jobs from Americans, every time we turn around there's a creepy looking guy in a pansy suit or bimbo who thinks their s--- don't stink because they have a mumbling, "high class" British accent doing the news or some decorating program or plugging the purchase of gold or decorator rugs because everyone knows if you sound upper class the masses MUST be impressed! Brits - go buy some more properties in other countries, bring in your bad food, don't bother to learn the language or culture and show us your properties with their unbelivable bad taste in furnishings or resell for highly inflated prices! YECH!
They want to be protected from the consequences of their actions, but without changing their actions. I think I read that conversation in an Ayn Rand novel.
52 - Brits - go buy some more properties in other countries, bring in your bad food, don't bother to learn the language or culture and show us your properties with their unbelivable bad taste in furnishings or resell for highly inflated prices! YECH!
Just like us Americans, eh?
27:
as a TTTlawstudent doing the same, please reveal more about yourself. i am planning on giving out you're-a-d-bag gift baskets upon arrival but would like to be prepared in advance.
50 - I must agree with 46 and wonder if it is you that may have your facts wrong. Depending on what practice area you are in, you may gripe too about your tough break when the partner you work for is given a few months to find a new job and you are left trying to save a sinking boat (and trust me, it will most likely be coming soon if you have time to check this site) . So, let us know then how you feel about your career at DLA.