Jobs go as finance firm closes
Saturday 19th December 2009, 2:57PM GMT.
STAFF at a Jersey finance firm are facing a bleak Christmas following the shock announcement that their office is to close.
Workers at Maples Finance, which opened a base in St Helier in 2000, were told last week that their branch will close early in the New Year.
The JEP understands that the announcement came as a shock to the firm’s estimated 14 staff, all of whom are expected to be made redundant.
In a statement, Maxine Rawlins, chief executive officer of Maples Finance, said: ‘While we had success in Jersey over the past nine years, we have had to make the difficult decision to close our St Helier office in order to align our resources with the changing needs of our clients.
The Queen's Diamond Jubilee
JEP Jubilee Editions
Saturday 2 June: Guide to Celebrations
Wednesday 6 June: Souvenir of Events
View The Queen in Jersey supplement
Travel
To, from and around the Island
Airport Arrivals/Departures
Harbours Arrivals/Departures
Bus Information/Timetables
This is Jersey
Jersey Evening Post
Useful links
So it’s ‘Oh dear; how sad; never mind!’ is it?
“I welcome UK bonus tax escapees, says minister”
Both items in the same paper, what the …. Oh I give up?
Report abuse
Easy come, easy go” would seem a fair paraphrase of Maxine Rawlins’ decision “to close our St Helier office in order to align our resources with the changing needs of our clients”.
She might have said, “We could not cut it here, so we will up sticks and try in some other tax-haven jurisdiction”.
This action causes yet more unemployment. My sincerest condolences go to those poor people at Maple Finance who have received a very unpleasant Christmas box from their employer.
Ladies and gentlemen, this will be the first hasty retreat by finance companies from Jersey as times get tough – but not the last.
When will our island government wake up to the fact that our finance “industry” is crumbling? Surely diversion must now be considered – or is Jersey to continue to place all its eggs in one basket?
Report abuse
deepest sympathies to those deemed surplus to requirements – or at least ‘least costly to discard’
stop me if i am out of date, but the lack of a proper employment law a la woolies, means that there is little or no statutory redundancy pay for those affected.
time to seriously start looking at safeguarding our own workforce properly. it is in the nature of capitalism to maximise profits / minimise costs and damned be he who gets in the way.
Report abuse
Another dent in the good ship Jersey. When will those in charge realise that to keep all one’s eggs in one basket is asking for trouble?
It is also about time employment legislation was put in place to better protect the workers.
I am sorry to see yet more people lose their jobs through no fault of their own. No doubt other companies will do the same in the coming year if they can maximise profits by moving elsewhere.
Report abuse
Haricotfou makes a good point
“…the lack of a proper employment law a la woolies, means that there is little or no statutory redundancy pay for those affected.
time to seriously start looking at safeguarding our own workforce properly”
However, with the popular perception of unions as “commies” and “lefties” (both terms plucked from recent posts) it would appear that Jersey prefers 19th century terms and conditions.
Report abuse
I agree with all of the above comments.
However, I want to add my genuine sympathies to those being made redundant and extra for the news being broken to them at the worst possible time of the year.
I wish you all success in finding other employment and hope that you have enough financial leaway to make it through till that time.
Report abuse
@ haricotfou #3
“…stop me if i am out of date, but the lack of a proper employment law a la woolies, means that there is little or no statutory redundancy pay for those affected…”
STOP! you’re out of date.
There are employment laws which give these emlployees statutory redundancy pay to those affected. Maples Finance has closed an office, not been declared insolvent.
Woolworth’s problems were very different to this, and the payments that were(and never should have been) made out of the Taxpayer’s pockets were nothing to do with statutory redundancy, they were ill-thought through political point scoring by some States Members who either knew what they were saying was rubbish, or didn’t know but should have.
Report abuse
I am unsure about the above comments referring to Jersey’s Finance Industry crumbling !
With due regard to thouse losing their jobs, was this company simply offering finance for consumers, i.e. Car HP and Personal Loans, the market for which is well catered by existing established providers.
It’s demise is presumably down to competition in the market place, rather than a sign that Jersey’s finace industry is crumbling !
Report abuse
#6 Leah Holmes, my sentiments entirely and to add Why oh why do these announcements always seem to come around this time of year? Jersey Water , Jersey Telecom, Croissant Gourmet and now Maples finance, all of these to add to the drip drip drip of “small scale” redundancies from various financial institutions that have gone largely unreported throughout the year.
Report abuse
These are very worrying times for Jersey. The golden years of finance is in decline, and due to our Government’s policy of ignoring every other industry, we are faced with a bleak future. Anybody with no quallies getting made redundant from finance, need to face facts – It’s time to leave I’m afraid!
Report abuse
Warren J
from http://www.maplesfinance.com/
Maples Finance, providing fiduciary, accounting and administration services to worldwide financial markets.
not Car HP and Personal Loans
so maybe
Jersey’s Finance Industry crumbling !
Report abuse
nowhere and no-one is safe. best of luck to everyone there, keep those spirits high, enjoy the holidays and stay positive that everything is going to be ok.
Report abuse
In a free market economy there are entrants and leavers to the market place. A finance house has to balance its books and in the current market its cost of money has gone up. There seem to be a lot of political comments posted above trying to make a point about sustainability of the finance industry. Maples packed up because their business model did not work when tested by the current climate. To those who doubt the politicians’ ability to influence industry, it still needs entrepreneurs to take personal risk and put their own money into any project. Can you all say that you buy everything locally and not on the inter net despite it being more expensive? If not what is your effect on the market place and will you be putting local jobs at risk?
Report abuse
I think you are right. But you should cover more on this topic.
Report abuse
There are a lot of people treating the exit of Maples as a sign of the end of the world. They obviously know nothing about Maples.
It is the administration arm of a Cayman based international law firm that established a law business over here about 5 years ago. They found it difficult to establish a big enough presence in Jersey to compete with existing law firms and shut down the legal business about 18 months ago and entered into a “best friends” relationship with Carey Olsen, an established Channel Islands firm.
Without the law firm to generate Jersey fund and securitisation work, there was little purpose in having the admin company providing the “associated services”.
Maples will continue to use its Dublin admin firm to administer its Cayman funds business and funds that wish to be established in Jersey will be referred to Carey Olsen and end up being administered by a Jersey funds administrator.
But its good to see how quickly those who know nothing about the finance industry can interpret the closure as a sign of a crumbling industry!
Report abuse
Finance industry or house of cards?
Report abuse
I agree with Mad f regarding the recent strategic changes in Maples as a whole and they did give it their best shot regarding establishing a presence in Jersey.
I just have to point out to everyone here that Finance is Jersey’s only industry and as its now in decline what are the States of Jersey doing to promote other industries that it has failed in the past. Would it not have been a better idea to do this 10 years ago just in case instead of saying it would never happen. Some of the guys in Maples in Jersey are the best in the Island and to lose their jobs at this stage is just not right and shocking for the island as a whole (trust me!). I wish them mucxh better luck next time and would recommend their services to anyone interested in making money.
One final point is Maples is very respected within the overseas markets. Dont under-estimate the decision to close the whole operation down in Jersey with all the other bad press this will affect the island’s reputation.
Report abuse
..to #7 J Laborrai
what law do you mean? the employment law 2003 makes mention of statutory terms of notice, which, if breached, may be actionable,but otherwise, no compensation seems due.
if you can find a reference to reduncancy pay in this (in force at least until 2008) then do let me know or else retract,
http://www.jerseylaw.je/Law/display.aspx?url=lawsinforce%2fconsolidated%2f05%5c05.255_EmploymentLaw2003_RevisedEdition_1February2008.htm#Toc189304831
kind regards
Report abuse
At least we are getting two new banks next year and even though some jobs in finance are tight at the moment and some firms are using these times to lay some people off things can only get better in 2010.
Report abuse
@ haricotfou #18
“…the employment law 2003 makes mention of statutory terms of notice, which, if breached, may be actionable,but otherwise, no compensation seems due…”
That’s the bit I’m talking about, all employees get a statutory notice periods, which, as in this case I understand, means that when somebody is advised they’re redundant without said notice they get paid their dues.
Why therefore should there be extra redundancy payments/laws required? As long as everybody involved knows where they stand on the issue when they sign their contracts what you’re calling for seems ‘redundant’.
And again I’ll point out that this has nothing to do with the payments not made by Woolworth’s to staff as you mention in your original post.
“…no compensation seems due…”
Exactly what compensation for work not done would you suggest is appropriate?
Report abuse
Jobs in the finance sector are no longer safe and the salaries are going down. Couple that with the cost of living and only the big earners will stick around eventually.
Report abuse
We need to put measures in place to tax higher earners more. We are heading towards significant unemployment and the employed will have to support the unemployed. Jersey States – make plans NOW to be prepared for the worst!
Report abuse
to #7 J Lamborrari..
the whole point that i make is that, when the rug is pulled, workers in jersey are not entitled to redundancy pay, whereas in the uk, they are, which was where the furore – and relative unfairness – arises.
your views are rather too victorian for most peoples taste. companies should not have to pay for work not done, but equally, they should note that unemployment wrecks lives. while the bosses can quit and spend time on the golf course, the rest of us can rot in penury.
a notice period will not give you much comfort if you cannot find another job.
that is why we should have at least parity in employment laws, so that overseas firms do not find it cheaper to dump our workers simply because we have made it more expedient for them to do so.
Report abuse
@haricotfou #23
“…a notice period will not give you much comfort if you cannot find another job…”
True, I agee, and if I were to be made redundant I would love some free money to make me a little more comfortable… but while looking at the issue without my own personal gain to consider I still don’t think it’s necessary.
Report abuse
…J Lamborrari,
you once again miss my point. statutory redundancy pay compensates persons to tide them over until a new job can be found, so that, hopefully, their mortgage is not foreclosed, family forced onto the street & marriage breakdown etc.
there is almost always some residual value or cash left in a business, pre-pack administration is the latest wheeze for owners to get out of paying a fair share to those most affected.
i am simply saying that redundancy pay is fair and necessary, and firms like maples should not be allowed to say ‘tough luck on you, we can make more money somewhere else’
plus, statutory reduncancy pay is commonplace in most other developed economies.
Report abuse