RMJM struggles to pay staff after YRM takeover
Cash flow problems blamed for delay to wages, expenses and pension contributions
RMJM is struggling to pay its staff in the UK for the second month running because of cash flow problems, two weeks after the company confirmed its takeover of YRM.
Employees have been told of a “cash flow issue” meaning January’s salary payments, due on the 9th, have not yet been paid.
December’s wages were delayed by several days. Delays to expenses payments and pension contributions have also been reported since October last year.
A spokesman for RMJM said: “Our resilience and the robust nature of our financial position is underlined by the fact that any payment delays have been minimal and always the result of a short delay in receiving agreed client payments.
“Where local studios around the world have not collected their cash on time we provide support from another part of the group. This is one of the key strengths of our global operation, but that process can, on occasion, take time.
“We caught up significantly with pension payments in December, and expenses are for the most part up-to-date.”
While the YRM takeover is not being blamed for the delays, some staff members have questioned the move at a time when RMJM is struggling to make ends meet.
One told BD: “In any other circumstances it could be read as a positive – potential new business, new sectors. But it’s connected with late payments. Staff are pretty resentful at head office and the lack of information we’ve received.
“Five YRM staff have come in at senior level. It seems odd that you wouldn’t first help out your own staff before bringing in other people.”
The situation marks the second time in less than a year that RMJM has failed to pay staff on time. In March last year RMJM’s Asia principal at the time, Catherine Siu, slammed chief executive Peter Morrison over wages owed to Hong Kong staff.
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Readers' comments (13)
Instead of slating RMJM I cannot think of anything worse than the staff at RMJM complaining and feeling resentful. When are they/ we for that matter going to get it. Architecture is a business just like any other. Look what has been happened recently, Architecture is not a vocation. A vocation will not pay the mortgage.
RMJM staff would be better off not working than working and not being paid. Further, down the line you will not be appreciated for your efforts. Look what happened at ASL.
My advice to all RMJM staff the world over would be to quit, resign, walk out and let us see how long RMJM/ YRM last. Without you, they are nothing.
You would think anyone would have to be mad to actively quit a job these days, even if it is a job with a purely money making-orientated firm as RMJM seems to be. But most architectural firm are the same these days, they look after their own directors and don't care one hoot about their employees. Its very sad and a situation that can only be remedied by leaving salaried employment altogether, as I am doing. For 15 years I have been putting up with being made redundant with every recession that comes along, feeling restful towards the money grabbing attitudes of most directors, and working hard for no appreciation other than a meagre salary. Now I am glad to say redundancy has given me the chance to prepare myself for a change in career to something I have always wanted to do, and to start working for myself for which I will no doubt be successful and make lots of money because I will enjoy it. the strange thing is as I prepare for that, I am being paid by the government about the same as I was as an architect (equivalent of £35k). And I have no stress.
I have worked most of my long architectural career in large commercial practices, maybe I have been uncommonly lucky, but they have always paid on time and in full. They have had hard, sometimes very bad times, but despite,or maybe because they take professional standards seriously, they have always run their businesses on a sound business basis. What has happened at RMJM and YRM of late just shows to me that they seem to have no idea what sound business and professional standards are. Times in the profession are hard but there is no excuse for not understanding how to run a business or act professionally.
Dear RMJM staff, get out now!
Seriously.
It is going to happen to you too.
I had a similar situation in the recession of the early 1990’s: it was a small company that regularly bounced salary cheques, although the director was minted. When this happened the second time I turned up to work as normal, sat behind my then drawing board, and did absolutely no work what so ever. The director clocked this by the end of the first day and immediately put funds into his business account so I could cash the salary cheque at the bank the following day.
P C good move. People these days dont have the nerve to do anything like that.
"Now I am glad to say redundancy has given me the chance to prepare myself for a change in career to something I have always wanted to do, and to start working for myself for which I will no doubt be successful and make lots of money because I will enjoy it. the strange thing is as I prepare for that, I am being paid by the government about the same as I was as an architect (equivalent of £35k). And I have no stress."
nats - how does the Government do that? Please let us know!
YRM Principals, out of the frying pan and into the fire - serves them right if they all go under.
Again BD way of mark again. Get facts before you print! Some real poor journo out there these days. End of day architecture isn't nice and Rosie and a very hard market in a global recession. If people aren't comfortable where they are, in whatever job industry then leave as no one holding a gun to their heads. '
And so was the herald I may add......