Camerons to cut 9 per cent of support staff as part of Integreon deal
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CMS Cameron McKenna is to lay off 9 per cent of its support staff, with a further 21 per cent facing relocation, as part of the transfer of its business services functions to outsourcer Integreon.
Duncan Weston
The details of the agreement with Integreon were revealed to staff at the firm yesterday.
Of the 363 people currently employed in business services roles, 21 per cent will be relocated to either Bristol or India - the equivalent of 76 members of staff. As many as 33 face redundancy.
It is not clear how many of the redundancies will come from the London office, where just over half the firm’s support staff are based.
In a memo to staff, managing partner Duncan Weston said: “We’re pleased to be moving forward with our plans to work with Integreon. Unfortunately, this will mean some redundancies in London as Integreon relocates and adds resources to Bristol and India, re-engineers processes and deploys new technology.
“The changing legal landscape requires constant innovation in the way we do business. This new approach to our business services will give us the ability to focus on our clients and provide a more sophisticated service.
“It creates greater flexibility to scale support services based on demand, and gives us access to a more advanced technology with the benefits of future investment by Integreon towards building a unified business model. It’ll also allow us the option to integrate our approach to business services across our international businesses.”
Camerons kicked off a consultation process with all staff yesterday ahead of the proposed transfer date of 1 April.
The proposed transfer will see Integreon buy the shares in Camerons’ business service company, meaning it will not have to transfer the remaining staff under TUPE (Transfer of Undertakings (Protection of Employment)) regulations. The proposals will see transferred employees retain their current salaries, terms and conditions.
The firm would not give details of the price paid for its business service company, but confirmed that the money would be recapitalised and used on future projects, including investments in new technologies and real estate.
Integreon will take a floor in Camerons’ City base from the summer, with chief operating officer Tony Wright, who has been on secondment with the outsourcer since June last year, expected to become an Integreon employee.
The Camerons partnership voted unanimously in favour of the deal last November (23 November 2010). Partners will not be involved in consultations with support staff.
Integreon CEO Liam Brown said: “CMS has the highest standards and set us the goal of delivering best-in-class services. We’re glad that we met their bar and look forward to a mutually rewarding, long-term relationship.”
Some transferred staff will service other Integreon clients in addition to Camerons, although the majority are expected to work exclusively for the firm.
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Readers' comments (29)
CMS to Employees: 'On yer bike!' | 25-Jan-2011 10:40 am
Don't know about you, but being 'asked' to relocate 100 miles away when an employer knows where I live could, perhaps, be interpreted by some people as being able to trigger a constructive dismissal claim. This is especially so when it is still perfectly possible for me to carry out my function for the business in London. Of course, whether such a 'request to relocate' really would be construed as dismissal would have to be decided by an employment tribunal after a full hearing of the facts. It would be interesting to see what previous ruling say on this.
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Anonymous | 25-Jan-2011 11:01 am
I love the use of the term 'consultation process', a ridiculous euphemism. Consultation implies some sort of interactive process leading to a mutual decision. It really seems to be take-it-or-leave-it.
Beware of smiling Dunkies.
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immaculate pasta | 25-Jan-2011 11:08 am
This makes sense. They're doing this to cut costs aren't they and if that means cutting some of the flab out of the headcount so be it. This is a business after all.
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Anonymous | 25-Jan-2011 11:25 am
Well, if you can't grow revenues, then you cut costs. Cutting costs are generally a defensive strategy when you are expecting problems with revenues. It is how you save a business, not how you make it profitable.
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Shambles | 25-Jan-2011 11:37 am
Not a surprise about the redundancies. I was at one of Liam Brown's support staff meet and greet sessions last Spring and he said there would not be any redundancies as a part of this process. Naturally, that that confirmed my suspicions and , I'll be honest, I'm glad I'm out of there.
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Anonymous | 25-Jan-2011 11:46 am
Interesting how "it will not have to transfer the remaining staff under TUPE ". As a buyer of outsourced services myself, I'll now be seeking my legal advice from Camerons as to how to avoid this pesky legislation that tries to protect my employees' rights and gets in the way of my cost-cutting agenda!
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Flabbergasted | 25-Jan-2011 11:49 am
To @ immaculate pasta - just wait until your employer designates you as 'flab' to be cut off (even though you are probably working your arse off and haven't had a pay rise in three years) - and then sit back and soak up that very special feeling. Bet you'll just love it.
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Anonymous | 25-Jan-2011 12:05 pm
I wonder if the name Cameron McKenna will exist as a brand in 10 years. Who cares, Duncan doesn't seem to - only 150 years or so of heritage and it's only a name anyway.
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Sreebalakumar | 25-Jan-2011 12:33 pm
Cameron can now give their 100 per cent in their core deliverence ... Like Integreon many more companies are in limelight in quality support deliverence ...
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Anonymous | 25-Jan-2011 1:07 pm
@ Anonymous | 25-Jan-2011 12:05 pm - In ten years' time it will probably be called something like CMS Piper or CMS McKenzie.
By then the process of automating and offshoring front office work will be in full swing too. Great for IT companies, partners/shareholders and workers in emerging markets, not so great for wage levels in the UK...
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