It has been a tough two weeks for employees at McDermott Will & Emery. First the firm cut the salaries of summer associates. Then MWE fired 72 people.
Today, word came down to all associates and non-attorney personnel that the firm is also cutting benefits. A firm-wide memo explained:
The Firm has evaluated its employee benefit plans and is making changes effective July 1, 2009.
We began our evaluation late last year in response to the deteriorating economy and the fact that changes to employee benefits plans were occurring throughout corporate America. After a thorough review by our benefits consultants, we were informed that our plans were above market and that specific changes, if implemented, would bring our plans more in line with the market.
Right. Who wants to pay an “above market” benefit package?
Remember, McDermott is the firm that canceled aspects of its coffee service. At the point where the firm is looking to save nickels and dimes on coffee, it shouldn’t be surprising that it has found a way to save some money on more important employee benefits.
A tipster reports that the top line changes to MWE’s benefit structure include an increase in some premiums and deductibles, as well as a reduction in the percentage of pharmaceutical costs that are covered by the firm’s health plan. Suddenly, the nationwide health care debate expected to take place in Congress this summer just became much more important to employees at McDermott.
In fairness, MWE isn’t the first firm to go down this path. Last month, Kirkland & Ellis made similar changes to its health care coverage for associates.
Read the full memo after the jump.