Published: October 22nd 2010 - at 2:51 pm

Leaked! Company supporting cuts says different internally


by Sunny Hundal    

Earlier this week a group of 35 business executives wrote to the Daily Telegraph saying the Chancellor George Osborne was right to introduce drastic measures to to cut the deficit.

One of the signatories was Philip Dilley, Chairman of Arup.

We pointed out that Mr Dilley recently joined the PM’s Business Advisory Group, and was thus close to the government.

We can now show that an internal by the company’s COO contradicts the optimism showed in the letter by Arup’s Chairman.

The email, leaked to Liberal Conspiracy, is from the company’s John Turzynski, pointing out why the company needed to make redundancies.

A key paragraph in the letter to the Telegraph said:

The private sector should be more than capable of generating additional jobs to replace those lost in the public sector, and the redeployment of people to more productive activities will improve economic performance, so generating more employment opportunities.

This is in fact central to the argument put forward by Osborne and his supporters.

But in fact the internal email sent by Arup’s CEO shows no such sign of confidence. The email says that the company does not see any good news on the horizon.

The email says that the trend was for “continuing decline” across many businesses, and that private sector projects “are not yet replacing” public sector reductions.

Read the leaked internal email

From: UK Consultation
Sent: 06 September 2010 16:46
To: UK Consultation
Subject: Message to UK Staff from the UK-MEA Region Board

Against the backdrop of a continuing slowdown in workload across many parts of our UK business, it is with regret that we will need to start a programme of staff reductions, beginning on 6 September 2010. Our provisional estimate is that there could be a reduction of up to 600 permanent roles across all parts of the business, in all UK offices (of the UK-MEA Region).

This is not an easy time for any of us, and with the anticipated improvement in our sector of the UK economy failing to materialise, these further redundancies have become inevitable.

We will conduct the consultation in as transparent a way as possible, and we have had an initial meeting with Airtime representatives (please see a link to the Airtime intranet site below). Briefing sessions with your Group Leader will also take place, providing you with the opportunity to ask any immediate questions you might have.

We will be regularly updating the intranet with details of the consultation progress.

I am personally convinced that although this is painful, it is a necessary action for the UK part of the firm, and that despite the last 18 months of staff reductions and all of our focus on winning new work, we cannot avoid taking this decision now.

John Turzynski,
Chief Operating Officer, Arup UK-MEA

————-
Why do we need to do this?
The UK economy is only slowly recovering from the affects of recession. The Government is reducing public expenditure and has signalled major cuts in the October Comprehensive Spending Review. Cuts have already been felt, for instance in the Building Schools for the Future programme. Private sector projects are not yet replacing public sector reductions.

The Board and the Region leadership have been monitoring our forward workload carefully over many months. The trend shows a continuing decline across many parts of the business, which is set to continue.
[SNIP]

Arup is making 600 redundancies to staff across the UK. This blog post by Osama Saeed outlines how many of the companies who signed the letter have made similar redundancies.


---------------------------
     Share on Tumblr  


About the author
Sunny Hundal is editor of LC. Also: on Twitter, at Pickled Politics and Guardian CIF.
· Other posts by


Story Filed Under: News


Sorry, the comment form is closed at this time.


Reader comments


1. Carl

Whoops

2. Tom

Arups IIRC just got reappointed to the High Speed Rail project.

http://www.arup.com/News/2010_10_October/20_Oct_2010_High_speed_start_HS2_Birmingham_Leeds.aspx

Obviously they have no vested interest in toeing the Government line in public.

[working in private industry I'm aware of plenty of firms downsizing *because* of the cuts, not upsizing in anticipation of a private sector boom]

3. Ceiliog

“The UK economy is only slowly recovering from the affects of recession.”
Shouldn’t that be “effects”?

4. sally

Oh dear, another lying sack of shit hits the ground.

5. Charlieman

Quoting from the leaked email message: “…our sector of the economy…”

Given that Arup specialise in very expensive projects, it is unlikely that they would be one of the first companies to benefit from slow economic recovery. What is occurring, perhaps, is that Arup is getting rid of people who they held on payroll not knowing when recovery will happen (ie companies “bank” talented staff in hard times until they can no longer afford to employ them; we do not know whether Arup banked 600 employees or 200 or 1,000).

6. Parasite

“Private sector projects are not yet replacing public sector reductions.”

Oh look, there’s the word ‘yet’. That invalidates the point of the OP. So that email’s not inconsistent with the prediction of private sector growth compensating for public sector trimming, is it?

Sunny Hundal misrepresenting and misquoting Tories. There’s a shock!

7. Chaise Guevara

@ 6

“Oh look, there’s the word ‘yet’. That invalidates the point of the OP. So that email’s not inconsistent with the prediction of private sector growth compensating for public sector trimming, is it?”

Um, only if you didn’t bother reading the rest of the letter, because if you had you would have discovered that: “The Board and the Region leadership have been monitoring our forward workload carefully over many months. The trend shows a continuing decline across many parts of the business, which is set to continue.”

Carry on.


Reactions: Twitter, blogs
  1. Liberal Conspiracy

    Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  2. Liberal Conspiracy

    Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  3. NewLeftProject

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  4. NewLeftProject

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  5. Nathon Raine

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  6. Nathon Raine

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  7. safefromwolves

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  8. safefromwolves

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  9. Rick

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  10. Rick

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  11. Ewan Nicholas

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  12. Keith Phillip Jones

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  13. TenPercent

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  14. Alex Snowdon

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  15. Angela Pateman

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  16. Kate Mungo

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  17. Diane

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  18. John West

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  19. cowan88

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  20. Rosanna

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  21. earwicga

    Wow! RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  22. sunny hundal

    Exclusive: Company chair says pvt sector will absorb cuts, in letter supporting Osborne. His CEO not so sure internally http://bit.ly/b0M1JU

  23. Don Paskini

    RT @earwicga: Wow! RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  24. sunny hundal

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  25. Oxford Kevin

    Arup is beneficiary of multiple PFI contracts. If they want more cushy contracts they better jump on Osborne's command http://bit.ly/b0M1JU

  26. Chad

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  27. Rob Holdsworth

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  28. Natalia

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  29. azulbuho

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  30. yorkierosie

    Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspiracy http://t.co/8SjuLux via @libcon

  31. Enzo Rossi

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  32. Gary Dunion

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  33. ben ssssss

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  34. lynseybarber

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  35. salardeen

    RT @yorkierosie: Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspiracy http://t.co/8SjuLux via @libcon

  36. Melissa Nicole Harry

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  37. Richard Simcox

    Whoops http://bit.ly/cMilPP #toryscum

  38. Josh Blacker

    Arup Chairman signs letter saying private sector will replace lost public sector jobs…while Arup itself says not http://bit.ly/bLQruN

  39. Adam Jennison

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  40. Web links for 22nd October 2010 | ToUChstone blog: A public policy blog from the TUC

    [...] Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspira… Sunny Hundal shows that while the CEO of Arup was happy to publicly claim that the private sector is driving jobs growth, he has made the opposite case in an internal email to staff. Specifically he states that "…with the anticipated improvement in our sector of the UK economy failing to materialise, further redundancies have become inevitable." [...]

  41. The Old Politics

    Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspiracy http://t.co/cphy5W5 via @libcon

  42. John Ruddy

    Arup to sack 600 RT @oldpolitics: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/bTHFSh

  43. John Ringer

    RT @oldpolitics: Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspiracy http://t.co/cphy5W5 via @libcon

  44. Jacob Richardson

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  45. John Fulham

    RT @libcon: Exclusive: leaked email shows company supporting Cuts saying different internally http://bit.ly/b0M1JU

  46. Allan Siegel

    Exclusive: leaked email shows company supporting Cuts saying different internally | Liberal Conspiracy http://t.co/RSdFvWX

  47. Fair trade starts home – Hangbitch

    [...] they weren’t straight with their customers at all. Liberal Conspiracy was leaked a private email that clearly demonstrated that people on the list had no confidence whatsoever in the [...]

  48. vikz Richards

    Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://ow.ly/2Ywf3

  49. vikz

    Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://ow.ly/2YwfD

  50. vikz

    Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://ow.ly/2YwfC

  51. Why I’m boycotting the 35 businesses who support the cuts | Liberal Conspiracy

    [...] weren’t straight with their customers at all. Liberal Conspiracy was leaked a private email that clearly demonstrated that people on the list had no confidence whatsoever in the [...]

  52. Let’s NOT make Labour’s stance on the deficit confusing again | Liberal Conspiracy

    [...] Of course Tories have no credible plans. And there won’t be any jobs created for years – even their friends admit this privately. [...]

  53. The Bickerstaffe Record » Blog Archive » Boycott the 35

    [...] will lead to private growth – is utterly wrong (so wrong, in fact, that one of the 35 firms actually says it’s wrong in an internal [...]

  54. Boycott the 35 « Though Cowards Flinch

    [...] will lead to private growth – is utterly wrong (so wrong, in fact, that one of the 35 firms actually says it’s wrong in an internal [...]

  55. Stuart Mullan

    Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://t.co/yJhc7Dg via @libcon #isausteritytheanswer

  56. Ross Haffenden

    Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://t.co/DJ3Re74 via @libcon

  57. jean

    RT @RossHaffenden: Leaked! Company supporting cuts says different internally | Liberal Conspiracy http://t.co/DJ3Re74 via @libcon

  58. Gary Dunion

    @FactCheck @timfoxon One factor is that firms will already be scaling back investment in anticipation of cuts. e.g. http://bit.ly/cMilPP





Sorry, the comment form is closed at this time.

 
Liberal Conspiracy is the UK's most popular left-of-centre politics blog. Our aim is to re-vitalise the liberal-left through discussion and action. More about us here.

You can read articles through the front page, via Twitter or RSS feed. You can also get them by email and through our Facebook group.
LATEST COMMENT PIECES
» Criticism of Obama for its own sake: a reply to Mehdi Hasan
» Do older people really need more NHS healthcare?
» There are alternatives to the reckless ‘Plan A’
» On Beecroft: it is already quite easy to sack people
» Why Cameron’s claim of 600,000 jobs created is plainly wrong
» By using age to allocate NHS funding, Lansley rewards Tory voters
» The rise in domestic violence deaths is not an “isolated” problem
» Adrian Beecroft highlights mindset of Tory right
» The US is now a model for the Eurozone to save itself
» The IMF plan to revive the economy doesn’t go far enough
» The Boris brand is weaker than his friends think
» Nine things you can do to halt Lansley’s destruction of our NHS






’43% of young women sexually harassed’
45 Comments



How Newsnight demonised a single mother
92 Comments



UKIP higher than Libdems over May
23 Comments



Red Tory Blond: gay marriage “homophobic”
50 Comments



Nick Cleg u-turns on economy too
10 Comments



Funny bits of TPA report you probably missed
26 Comments



Poll: banks not paying fair share for crisis
22 Comments



Frank Field wrong on workless households
69 Comments



TPA report quotes Bible to preach low taxation
44 Comments



Ed M disliked Byrne’s hard line on welfare
25 Comments



 LATEST COMMENTS
» steveb posted on Do older people really need more NHS healthcare?

» So Much For Subtlety posted on '43% of young women sexually harassed'

» Paul posted on Criticism of Obama for its own sake: a reply to Mehdi Hasan

» Conby posted on '43% of young women sexually harassed'

» Jim posted on How Newsnight demonised a single mother

» So Much For Subtlety posted on Do older people really need more NHS healthcare?

» JC posted on Why Cameron's claim of 600,000 jobs created is plainly wrong

» pagar posted on '43% of young women sexually harassed'

» So Much For Subtlety posted on '43% of young women sexually harassed'

» D.O posted on How Newsnight demonised a single mother

» So Much For Subtlety posted on Criticism of Obama for its own sake: a reply to Mehdi Hasan

» Briar posted on Do older people really need more NHS healthcare?

» Eddy Cool posted on How Newsnight demonised a single mother

» Ben2 posted on '43% of young women sexually harassed'

» pagar posted on '43% of young women sexually harassed'