Thompsons partners culled by Woolf
Panel cuts- Personal injury giant to cut one-fifth of equity partners; Woolf reforms blamed for voluntary job losses
March 10, 1999 at 07:03 PM
3 minute read
Plaintiff personal injury giant Thompsons is to shed 11 of its 55 equity partners as a direct result of the changes being brought about by the Woolf Reforms.
The top 50 firm, which has the largest personal injury practice in the UK, made the announcement to its staff last week.
It has asked for partners to volunteer for the cull, which was recommended by a group of senior partners who set up an internal 'Woolf Group' two years ago to examine the impact of the reforms.
Ninety per cent of the firm's work will be assigned to Woolf's fast track, and the group concluded the firm's employee structure was top-heavy.
A source at Thompsons, which receives 90% of its work from trade unions, said: "In essence the reforms will mean more work for less money – this means that we cannot afford the hierarchy that we have."
Equity partner Tom Jones, who led the Woolf group, said that the firm was not planning to shed salaried partners or assistant solicitors.
He said that the departures would take place voluntarily and would be phased-in during the next two years. Although no partners had volunteered to quit, he said it was hoped volunteers would "come forward relatively quickly". He warned "We are taking steps now that I suspect all firms will be taking in the future."
Under the restructuring programme the remaining partners will take on more of a management role.
Multi-skilled specialist teams made up of legally qualified and non-qualified staff will deal with all fast track personal injury cases.
The firm has invested a massive £2m in new technology to deal with the new procedure. Union clients of the firm have been actively consulted about the restructuring programme.
Bronwin McKenna, director of Legal Services at Unison, one of Thompsons' major clients, said it supported the move: "It is the effect of the Woolf reforms on personal injury litigation – a different balance of skills and expertise is required," she said.
Fraser Whitehead, a senior partner at rival personal injury practice Russell Jones & Walker, said that his firm had restructured its practice some time ago to accommodate the civil justice reforms.
Martin Bruffell, president of the Forum of Insurance Lawyers (Foil), and a partner at defendant insurance firm Berrymans Lace Mawer, said: "Historically our firm has always had a comparatively small number of equity partners which is why we are able to charge at a low rate."
In February Legal Week revealed that Freshfields was restructuring its litigation department in response to the reforms.
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