RMJM boss admits wages fiasco has 'left many scars'
Peter Morrison, chief executive of RMJM
Practice due to be paid Middle East debt tomorrow
RMJM chief executive Peter Morrison has admitted the firm’s reputation among staff caused by its failure to pay their salaries on time may never recover.
Today marks the fifth missed pay-cheque for staff in its New York office – the equivalent of two and a half month’s wages – while principals are now owed three months’ pay.
Yesterday the firm sent an email to staff in New York, spelling out a timetable of payments. It said it had agreed a deal with a client on a debt in the Middle East, and Morrison apologised for wages not being paid on time.
In the email, seen by BD, he conceded that the firm’s stock had been hugely damaged by the affair He wrote: “[It] will have left many scars and for that I am very sorry.”
Morrison said RMJM expected the first tranche of money from its client, believed to be Dubai Properties Group, to be paid into its Dubai account tomorrow (March 31). He added: “The agreement will see our long outstanding debt in the Middle East settled over the coming months.”
He added that all March salaries would be paid “as soon as the funds are cleared” but admitted that staff missing January and February wages would only have 60% of the money paid, with the remainder coming in two equal amounts at the end of April and May.
But staff, who had earlier been told missing wages would be paid in January and then by the middle of February, reacted angrily to the news. One said: “The promise on the table was the full payment of all outstanding pay-cheques by the end of March.”
And another added: “Tomorrow is a weekend day in the Middle East. It’s ridiculous to suggest there will be money on the 31st. Saying ‘as soon as the funds are cleared’ leads me to believe this is more of the same. We were told repeatedly we would be fully paid on or before March 31.”
Earlier this week, BD reported that RMJM had told senior managers in New York to convince staff owed money to still turn up to work. Last month the company was hit by a mass walkout of staff which left just principals and temps showing up.
In his email yesterday, Morrison thanked staff for their “patience and forbearance” during the period and added: “I want to put on record my deep appreciation for the continuing world-class work which our studios have continued to produce.”
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Readers' comments (12)
Hey Fred the shred said sorry too!
Once again another "payment plan" , we have all (clents, consultants and staff alike) heard this too many times. It is only a means to keep people at bay and string along others to continue to get what they want.
The unpaid salaries and fees being held by RMJM constitute a business loan. All monies should be paid back with interest (if they were real businessmen they already know this)....but paying it back is the key word.
RMJM are so Scott-of-the-Antarctic, what-ho! Or are they more capitan Smith of the Titanic? Another Great British Success, what!
No sh*t Sherlock...
I think the deserved that, I worked on the London office some years ago and as student they send me to work with they visualiser named Khan, who made life horrible blamed for things I didn't do and one day I came to the office and it was another guy sitting on my chair with out any notice whatsoever, I have to left humiliated just for being student and not able to work full time...and they didn't do anything about it and let him get away with this unprofessional behaviour.
'The cheque's in the post '....... 'fiasco', 'fraud', or 'farce'? Not funny for those trying to pay bills, rent, mortgages.
Having been involved in several small businesses including architectural practices, restaurants and dog daycare, my rule has been keep trying for payment for three months then either write the debt off and move on or issue a summons. Currently there is one outstanding small claims case against one former client and a restraining order against another. It's not fun but it's effective and our good clients know we're a serious business and they're not subsidising the tiny minority of bad ones. One loss I wrote off, but am glad to see others are taking to court on my behalf is one I incurred involving a certain (ex sir) Fred. It's a small world.
What has happened to the much trumpeted refinancing of 12 months ago?
What was the back up plan if this long standing bad debt was not cleared this month or year?
What happens this time next year when no more refinance options are available, no more bad debt can be collected and more and more clients abandon this once proud company?
Editor's comments
(comment edited by the moderator)
Spot on Tavistock! If the 3 stooges of RMJM were ousted, I still think the firm would recover! Let's hope this massive failure sticks with their careers so they cannot move on and ruin other well respected and prized firms.
As the RMJM brand has become "toxic" in the architectural world, they should follow Bonvivant's lead and move into restaurants and dog daycare. I can see it is quite easy to build a pyramidal scheme which reuses the dogs in the restaurants.