Brass comes clean on redundancy consultation process
Brass comes clean on redundancy consultation processHaving last week denied that it was set to make any redundancies, Leeds marketing agency Brass has confirmed that as many as 20 roles could be at risk as a result of losing business through public sector budget cuts.
When approached by The Drum on Friday, Brass denied that it had made several redundancies as a result of its advertising contract with housebuilder Persimmon Homes coming to an end.
Now CEO John Morgan has revealed why the agency has found it necessary to review between 10 - 20 jobs out of its workforce of around 175.
He said: “The economic difficulties continue to impact businesses in every sector and, consequently budgets are being adversely affected. We have particularly felt this amongst some of our public sector clients. That has forced us to review our costs, and several weeks ago we started a consultation process.”
Morgan added that a number of roles had been identified as being ‘at risk of redundancy’ and that a consultation process has been entered which would possibly conclude this week.
“We have identified a number of roles that are at risk of redundancy and are in consultation with the individuals affected. That process is likely to conclude this week but until then we are unable to comment in any more detail publicly due to the ongoing nature of these discussions.
“The actions we are taking are extremely painful for everyone concerned, both those directly affected and the rest of the business.
“Brass is still a strong and profitable agency, and we have enjoyed consistent growth over our 27-year history.
“We have a great team of talented people, a client list that is second to none and we have a responsibility to maintain the long term strength of the business.”
“Also, we are contracted with Persimmon until the 31st January and again as part of ongoing discussions we cannot make any further comments on this subject.
The agency’s contract with Persimmon Homes expires on 31 January, with a decision yet to be reached between McCann Erickson Birmingham and Fuse8 it is understood.
The Drum learned last week that managing partner Malcolm Cowing will also be leaving Brass in the new year. Cowing was outspoken about the mooted redundancies in our comments section.
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Comments
Really don't like the breathless, gossipy tone of this article, Drum. Like they're really going to rush to inform you first before telling the people whose lives it impacts on? If you knew anything about business you'd know there's a process a company is required to go through. Have some respect.
Maybe if Brass had come clean in the begining instead of twisting the original question peoples lives wouldn't be impacted on.
I always thought that good PR operators kept you out of the media, as well as in. Shame on Brass for letting what is going to painful times for 20 of their staff be played out like this. It would have been so easy to explain that this is a sensitive time for the agency and its employees, and no further comment would be made for the time being. And as for the use of the mug shot of John Morgan - yet another smug Brass "I'm alright Jack" smiling fat cat director. What a shambles!
Downward trajectory of Brahm/Brass/ whatever you want to call it coincided with Morgan starting to run the show.
And when did you last see any good work come out the place?
Completely disagree with the last comment. Its got nothing to do with John Morgan. When you have a lot of work on the books for the public sector, and Mr Osbourne slashes their budgets, its gonna be tough times.
The downfall of this business is when Swamp was bought by Brahm, and some of the big money earners at Swamp started throwing their weight around as if they knew how to run the show at Brahm.
Digital is slowly taking over from other traditional forms of media but to dismiss anything other than digital in what is meant to be an "integrated" agency, is nothing other than short sightedness.
There is a lot of people at that agency earning a lot of money and doing naff all for it. But of course their jobs are safe arent they?
I agree with anon 10.05, in that it's all about due process: this is a legal matter... what would some of the commenters prefer?...to have a decent company act in a cavalier fashion just so everyone outside can know what's going on before those affected directly inside the business? Maybe just maybe the company feels that it needs to concentrate more on the process, and the initial statement was a polite 'yes, we have issues, but, at present, the details are nothing to do with you' statement. (I don't know, but being objective about it, that's likely, and responsible).
It's not a 'twisting' as the due legal process requires a consultation if a certain number of the total staff is potentially affected and there are strict rules for how this is done and it's only at the end that redundancies actually happen and that information can be confirmed more widely.
As for the comment about the picture, surely this is just a shot held at the Drum of the guy, so I'd suggest you cool it with the barbed comments...in this and other industries companies hire when the going's good and unfortunately have to trim when it's not so good...think about it! It's clear that the 'smug' director actually runs a decent agency in a proper way.
By the way, I don't work for Brass/Brahm and never have, and I totally sympathise with the people who are going to be affected: sure, it's (going to be) a newsworthy story that one of the biggest agencies is going through this process, but I do like to see fair reporting and fair commenting.
anon 14:17
What would you say is unfair about the comments? Its the person who leaves the comments' opinion. If you dont like it dont read it.
Fact of the matter is that this has been badly handled by Brass. The original story was a blatant attempt to hide the consultation process story, which they have had to follow up with a release telling the truth.
I was one of the people made redundant and regardless of the way it was handled it's unfair to single out John. I have known John for many years and this is hurting him.
Hurting him all the way to the bank..get real!
Well if you're still "strong and profitable" why are you making redundancies?
comments
Well, I am appalled. Firstly, for the way in which The Drum has shamelessly (and blatantly) gone about Shanghaiing BRASS in an irreverent attempt to bolster their cause for readership, by adding fuel to an already well stoked fire. Secondly, I’m appalled by the unprofessional nature in which both BRASS employees and ex-employees comment ‘anonymously’, slinging personal insults and disgruntled rantings with no regard for how their outbursts may affect the future of the business. This isn’t The Jeremy Kyle Show, this is people’s livelihoods.
I am ex-BRAHM and still have a large number of close friends working for the agency. I’ve also seen good friends leave the agency under previous bouts of redundancies and, although it’s been personally difficult to see those people fall into difficult circumstances, I have no doubt that the agency would never have taken those measures, had they a choice. I think people forget that, sometimes businesses don’t have a choice and, for one reason or another, hands are forced – whether you like it or not.
I’d like to make it clear that I’m in no way naive to the shortcomings of BRASS over the past week or so - comments made have been short-sighted and provocative. However, in times when individuals are fearful (for their jobs), it’s easy to find a scapegoat and then throw them to the wolves. Understandably, many have an axe to grind. But this is not the right forum to wield that axe, when, in reality, it may cause more trauma than initially intended.
As for The Drum, the Leeds advertising scene is already decimated and we have seen many great agencies disappear into oblivion. Is the publication hell bent on adding to that tally? Last time I looked, it is agencies like Brass that makes working at the magazine possible. If all the agencies fall by the wayside because of their tabloid style journalism, what next? I’ll tell you what next, The Drum will have nothing to fill their pages and they’ll be looking at their own job security with an air of concern.
Hey Stew, it's the comments of Malcolm Cowing that have really stoked the fires on this one, most grownups understand the due process that has to be followed in these situations, but the appalling spin that has been put on this by the directors of Brass has been an insult to the said process and worst of all to the individuals that are involved in the process. The bad feeling and vitriol directed at Brass is a reflection of the way this story has appeared and not by the Drum but by the management of Brass.
Many agencies go through this process when they lose major pieces of business; it's having the bollocks to be open and truthful if you agree to make a comment to an industry rag rather than trying to be clever at the expense of the feelings of the individuals affected.
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Here, here Stew.
It's unfortunate how this was handled in the first place, and for those people directly affected it was doubtless hurtful and saddening. But only those directly affected have a right to say so and it seems there are some people commenting on this article, and the previous one, who aren’t directly affected, don’t have personal interest, and are using this as an excuse to score points (including, if I may add, The Drum’s headline this morning).
Taking pleasure and finding opportunity in others’ discomfort is pretty damned low. As an industry we’re all at risk, and never more so than in the current climate. Let’s hope that Schadenfreude doesn’t happen to other organisations who will no doubt find themselves in similar situations.
Love to all Brasscals (Brahmers).
The Whole Caboodle Harrogate are in the same position, they have made redundancies in 2009 and i'm pretty sure more will come in 2011 due to lack of business and losses of big clients such as the co-op. However this is more a lack of service rather than budget cuts.
The question remains unanswered as to when and how many staff WILL leave due to Persimmon? So far according to JM, the 20 to go are 'public sector' victims, leaving it clear that they are far from the last to go.
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Get a little tired of reading crass Anonymous comments on this and other stories. Whilst I appreciate people may have valid reasons for omitting a name can't help feeling that sometimes cowards are jumping on the bandwagon.
Doomed from the start, why rename an agency with a decent reputation, heritage and credentials, to sound like some kind of northern 2 man band which it now sadly looks like its turning into. The signs were there right from the start.
If the senior management of a business operating in an industry like ours, can't handle a PR situation in the correct manner, then they deserve all the crap that flies their way.
The reason this has blown up in their faces, is because they tried to bullshit everyone, instead of simply telling the truth.
If they'd been open and honest about the situation, they would have received support and understanding, as the majority of us are all having a torrid time at the moment.
So trying to push the blame for the furore that has developed, onto people expressing their opinions on here (anonymously or not) is silly.
This is a completely self inflicted PR disaster - by a PR agency???
The lesson here is that PR agencies rarely do online PR well. Old rules do not work in the new world. Get with the times oldies!
When will people in digital stop thinking that it's some brave new super world where only cool young dudes wearing wake board shirts with 4 addresses on Foursquare can play.
It's just another delivery channel!!!!!!
And judging by the complete lack of any ideas, or marketing strategies, from a great many digital agencies, maybe they should start seeking the help of 'Oldies'
I know how to drive a car, but it doesn't mean I know how to design and build one!
10:09..good comment..I get bored with these IT people pretending to be something they're definitely not..Stick to technology!
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Not sure whether Mike Baxandall and any of the original BRAHM team are still involved. If they are there'll be no problem. My agency and Bax's were growing about the same time and slugged it out toe to toe if business was around - but we always had a pint or three in the Regent afterwards. A great team and a great agency! Anybody made redundant should take comfort in the fact that you were part of that success...
Shame that the ordinary people at Brass will lose their jobs, i'm sure the director will be full of remorse over the xmas holidays enjoying the fruits of their personal bonuses whilst the soon to be ex-workers worry about how they are going to pay bills! And what was wrong with the old Brahm name which was well known throughout the north - rebrand not rename!
Exactly, I guess none of the directors even considered taking the tiniest cut in their massive salaries to save just some of the jobs of long serving, loyal employees with bills to pay and families to support. Hope you enjoyed your Xmas!
How ironic that Paul Whittaker should put his 'two penneth' in here.
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