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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