By Graeme Strachan

A LEADING Tayside law firm set to axe up to a quarter of its workforce could determine selection for redundancy by means of a points scoring method.

The performance matrix scores employees who could potentially face redundancy under various criteria that will be used to measure their value to the company.

Blackadders Solicitors, which has 240 partners and staff, anticipate between 40-60 job losses across the firm with both fee earners and support staff affected.

The firm blamed the credit crunch for the bleak news and the effect that it has had on mortgage lending, which has impacted significantly on the estate agency, residential and commercial conveyancing practices.

Employees say they will now be chosen on a points scoring method.

Managing partner Johnston Clark told The Courier there would have to be “a matrix type approach to the redundancy process” but said it was too early to say what the methodology would be.

The process will begin once a consultancy body is established in the absence of a trade union.

“Last in, first out” was commonly used in redundancy situations but it is now rarely used, partly because it can mean that some of the most capable employees with the best employment records are selected for redundancy.

As an alternative, most companies now decide selection for redundancy by means of a performance matrix under which all employees are scored under various criteria.

These criteria will usually include assessment of a variety of competencies along with assessment of attendance/sickness records and disciplinary records.

The selection is based on the number of points scored and is made more attractive to businesses since it is regarded as basically valid by the Employment Tribunal provided there is a proper system in place and it has been implemented in good faith.

Managing partner Johnston Clark could not rule out a matrix type system being put in place.

“That wouldn’t be an unusual thing to do,” he said.

“There has to be a constructed matrix type approach to this kind of thing.

“We’ve still to get our consultancy body in place before we begin to apply the methodology.

“But this situation would not be unusual in the circumstances.”

Mr Clark continued, “The rules require the staff have to have a consultancy body throughout the redundancy process and we are trying to establish who those people are.

“We have an internal staff liaison group and we’re asking the staff if they are happy with that.”

The Dundee company has seen a slowdown in the time it is taking for properties to sell and it is thought the market is not going to see any recovery until at least 2010.

Mr Clark said the firm has been left with no alternative because it does not anticipate the market will pick enough within the foreseeable future.

One employee said last night that morale was low among staff after Friday’s announcement.

“They are strategically deciding what jobs they need for the company and then each department head will be giving each staff member a score,” the employee said.

“Depending on this score and what jobs are needed will determine if we have jobs at the end of the day.

“From Friday July 11, we have 30 days, apparently by law, before we will find out whether we will be keeping our jobs or not.

“If we don’t get kept on then we will be working our notice and obviously then if we want to appeal we can.

“Until then we have to just work away. My lunchtime is now spent looking at recruitment websites.

“Morale is totally at a low in our office and it feels pretty awful that someone is going to be giving us points and we could be missing out on our own job by a point to someone else.”

The credit crunch has resulted in borrowers struggling to borrow.

Lenders are demanding bigger deposits, cleaner credit records, and higher interest rates.

Low-cost tracker and fixed rates have all but vanished along with 100% mortgages.

Solicitors’ firms across the country have been forced to cut jobs as a result of the credit crunch.