Lawyers Weekly, November 11, 2011 by Rebecca Whalen

IN-DEPTH

PRACTICE PROFILE

THIS WEEK

OPINION

Business expects to be bankrolled

Lawyers question Qantas

Rage against the time-tracking machine

How firms can snare grads

SHOW ME THE MONEY

RESTING KANGAROO

CORRS CONTROVERSY

YOUNG BLOOD

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559

Friday 11 November 2011

Print Post Approved 255003/05160

WEATHERING THE STORM

Lawyers strap in ahead of global gloom

International Singapore | U.S. Securities

Singapore | Corporate Associate

Tokyo | Banking & Finance

The Asian based U.S. Capital Markets Group of this international firm is expanding. The practice focuses upon public and private international securities offerings representing non-US based companies in transactions involving United States federal securities laws. The practice also includes the representation of issuers and underwriters in public and private securities offerings in the United States. Candidates must have experience with offerings pursuant to Rule 144A and Regulation S. Ref: SIN/4549/RL

A new opportunity has become available for a commercially minded Commonwealth qualified junior corporate associate to move across to the Singapore office of a highly regarded international law firm. You will advise domestic and international blue chip clients on high profile transactions, acquisitions and joint ventures. Depending upon the seniority of the successful applicant, experience managing client relationships may be an important aspect of the position. Excellent academics required. Ref: SIN/4495/RL

We are looking for a lawyer experienced in one or more areas such as acquisition, leveraged, project finance or general lending secured from a top or quality mid tier firm to join an global law firm. In addition to fluency at handling a range of financing transactions a commercial outlook and the ability to maintain and develop client relationships are essential. Japanese NOT required but would be highly regarded. Ref: TOK/3720/RL

Two roles: 2 – 3 and 4 – 6 years

3 – 5 years

4 – 6 years

“Law firms will be wary of having a sudden upturn in work and not having the lawyers to do the work”

Contents 10

Dominic Peacock, consultant, Naiman Clarke - See page 18

IN-DEPTH: Global law firms are looking to muscle-in on the long-established links universities have with national firms. Justin Whealing looks at how firms maintain connections with universities to put themselves front and centre in the graduate recruitment market

regulars

06 12 14 16

THIS WEEK: A round-up of the latest legal news IN-DEPTH: Almost half of Australian business leaders expect the cost of funding to increase, however they’re not concerned about availability. Briana Everett reports PRACTICE PROFILE: The recent industrial action undertaken by Qantas and its workers was nothing short of dramatic. Briana Everett and Claire Chaffey examine what was a highly strategic use of Australia’s workplace laws OPINION: Law firms compete for graduates with as much vigour as they compete for clients. Recruitment specialist Sue-Ella McDowall lists the dos and don’ts of a recruitment campaign

CAREER COUNSEL: Although there are plenty of career opportunities available for Australian lawyers, writes Greg Plummer, they’re failing to make the most of them A D _ L WQ U E N O V 1 1 _ 1 1 . p d f Pa ge 1 1 / 1 1 / 1 1 , 9 : 3 5 AM FOLKLAW: The lighter side of the law

“QUT’s PLT helped prepare me for real practice and set me up to make the transition into the work force.” Melissa Cable QUT graduate

COVER STORY: As the European debt crisis reaches tipping point, the Australian legal recruitment market is treading carefully. But as Briana Everett finds out, law firms are still on the hunt for talent

Practically, the only choice for PLT is QUT. QUT is a leading provider of Practical Legal Training in Queensland, with an enviable reputation for its practical approach. With recently refreshed course content, the program offers problem-solving scenarios and reflects the realities of a daily modern legal practice. And if you need a work placement, we will provide it.

The only choice for PLT is QUT. Full-time, part-time and online. Apply now, or phone Liz Clark on (07) 3138 2211 or email ea.clark@qut.edu.au

LAW-11-691 CRICOS no. 00213J

www.qut.edu.au/legal-practice

l aw y e r s w e e k ly 11 n o v e m b e r 2 0 11

editor’snote

Editor, Justin Whealing

Join THe conversation

Tweet, tweet Get your 140 characters of must-know legal news via @lawyersweekly Friendly faces Follow Lawyers Weekly on Facebook at www.facebook. com/lawyersweekly

Have your say Do you have something you’d like to share? Send an email to editor@lawyersweekly.com.au or phone (02) 9422 2875. Alternatively, go to www.lawyersweekly.com.au and make a comment online.

l aw y e r s w e e k ly 11 n o v e m b e r 2 0 11

While Australia is a member of the G20 – indeed, it is hosting the next meeting in 2014 – it is still a small, open economy subject to the whims of global fluctuations. While buffeted somewhat from the recent global financial crisis by Chinese demand for our resources – a situation that continues unabated – recent economic developments in Europe are starting to have an effect on Australia’s economy and, in turn, Australia’s legal market. Senior journalist Briana Everett’s cover story this week ( see page 18) focuses on what trends recruiters are noticing in the legal market, and some of it doesn’t make for pretty reading. Taylor Root manager Brian Rollo describes the demand for in-house banking and finance roles as being “dead”. “Banks and corporates that hire transactional lawyers haven’t got any headcount approval because of overseas issues,” said Rollo. “So they’ve been massively affected by what’s happening in Europe.” It is not just in-house roles that are drying up. Private practice equity capitals markets teams have seen work slow to a trickle. With economic storm clouds hovering in Europe and North America, international companies are increasingly looking towards Asia as the best source for its future growth. European and North American law firms realise this, with the world’s largest global law firm, Baker & McKenzie, holding its annual partners meeting in Beijing in late October in recognition of the growing importance of China and Asia on the world’s global economy. Australia has benefitted from Asia’ growth story to date via its resources, proximity and political and legal systems being very similar to that of Europe and North America, making it an attractive investment destination for global companies, like law firms, seeking to expand in the Asia Pacific region. By establishing regional links and ties throughout Asia, which is something Australia’s university law schools have done very well (see page 10), and which Australia’s national law firms are having to do as a competitive necessity, large Australian corporates of all stripes will protect themselves somewhat from being blown over by financial storms from the “old” world economies. Top Ten sTories online this week 1 Corrs adopts automated time billing 2 FWA to blame for Qantas dispute 3 Tracking your every move 4 No win, no fee under spotlight 5 Grads and young lawyers question Mallesons 6 Perth lawyer educates judges about mental illness 7 Criminals take lawyers to court 8 It’s the new style 9 Lawyers behave badly on Halloween 10 Truman Hoyle chooses friends over partners nexT week Following another year of international law firm arrivals in Australia, Lawyers Weekly reveals the top movers & shakers of 2011, including a wrap-up of all the year’s biggest lateral partner moves as global firms take their pick from Australia’s legal industry.

ediTorial board Lawyers Weekly is delighted to have the following industry leaders on its editorial board andrew grech Managing director, Slater & Gordon

nick abrahams Partner, Norton Rose

will irving Group general counsel, Telstra Corporation

helen Mckenzie Deputy managing partner, Blake Dawson

sharon cook Managing partner, Henry Davis York

Joe catanzariti Partner, Clayton Utz

David cowling Partner, Clayton Utz

robert Milliner Chief executive partner, Mallesons Stephen Jaques

ewen crouch Chairman of partners, Allens Arthur Robinson

Megan Pitt Director, Australian Government Solicitor

sue gilchrist Partner and practice leader (intellectual property group), Freehills

lucinda smith Partner, Thomsons Lawyers

abouT us Publisher: John Nuutinen editor: Justin Whealing Deputy editor: Claire Chaffey senior Journalist: Briana Everett Journalist: Stephanie Quine Designer: Ken McClaren sales executive: Toby Chan subscribe toDay Lawyers Weekly is published weekly and is available by subscription. Please email lawyersweeklycustomerservice@reedbusiness.com.au All subscription payments should be sent to: Locked Bag 2999, Chatswood D/C, Chatswood NSW 2067 aDvertising enquiries: Advertising enquiries: John Nuutinen john.nuutinen@reedbusiness.com.au (02) 9422 8931 (mob) 0402 611 177 Toby Chan toby.chan@reedbusiness.com.au (02) 9422 2545 (mob) 0404 652 800 Stephen Hogan stephen.hogan@reedbusiness.com.au (02) 9422 2290 (mob) 0425 270 832 eDitorial enquiries: Justin Whealing justin.whealing@lexisnexis.com.au (02) 9422 2832 All mail for the editorial department should be sent to: Lawyers Weekly, Level 1 Tower 2, 475 Victoria Ave, Chatswood NSW 2067

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SENIOR LEGAL COUNSEL PROVIDE CROSS BORDER SUPPORT Sydney. This international company offers their clients a broad range of financial, corporate and trust services, they have offices in Australia, Asia and Europe. They are seeking an additional lawyer to assist the Director of Legal in providing legal support to the operational directorates. With five years+ PAE, you will independently manage dossiers relating to matters including high level products for the financial services sector, be involved in complex negotiations and the drafting of intricate contracts. They are seeking lawyers from a top tier practice or a recognised financial services legal department. Contact Craig Poole at craig.poole@hays.com.au or 02 8226 9753.

INSURANCE LITIGATION LAWYER GAIN EXPOSURE TO HIGH PROFILE MATTERS Sydney.

Acting for large corporate clients covering a broad range of commercial litigation matters, this specialist boutique practice was developed by a group of reputable top tier partners. Their work includes public liability, professional indemnity, product liability and medical malpractice. As a result of organic growth and internal promotions an opportunity exists for a two years+ PAE insurance litigator to join this successful team. You will work with a friendly team of experts, gaining exposure to high proﬁle clients and matters. Contact Mhairi Morrison at mhairi.morrison@hays.com.au or 02 8226 9664.

hays.com.au

PARTNER/SENIOR ASSOCIATE JOIN A RESPECTED FIRM

AMBITIOUS SENIOR ASSOCIATE ENHANCE YOUR CAREER

Adelaide.

Brisbane.

A golden opportunity exists for a talented Employment Partner or a very experienced Senior Associate to join this highly respected Adelaide ﬁrm with a genuine respect for work/life balance.

This specialist ﬁrm are well regarded. They have expanded convincingly across key areas and their property practice is seeking an ambitious lawyer.

You will already be an accomplished employment lawyer with considerable experience acting for employers on the full spectrum of employment matters.

Working alongside a team of experienced practitioners, you will spend the majority of your time working across both commercial leasing and general property matters with particular emphasis on shopping centre leases.

With the support of a close knit and reputable team, this really is an outstanding opportunity. Expressions of interest are invited from lawyers with a healthy local client base, working within a reputable practice.

Your strong communication and interpersonal skills will be used towards building and maintaining key working relationships and generating networking opportunities. A long-term succession plan exists for the right practitioner along with a competitive salary and signiﬁcant bonus structure.

Contact Layla Firth at layla.ﬁrth@hays.com.au or 08 8231 0820.

Contact Shane Badman at shane.badman@hays.com.au or 07 3243 3033.

hays.com.au

SENIOR LEGAL COUNSEL – IT SERVICES DRIVE THE BUSINESS

SENIOR ASSOCIATE – OH&S APPLY YOUR EXPERTISE

Melbourne.

Perth.

This global organisation has a market leading presence. Known worldwide, they provide innovative services to national and international clients. An expert in IT services with great industry knowledge will help drive the business forward.

This award winning ﬁrm has established a strong position in both local and international markets. Due to the thriving resources sector and recent legislative changes, a senior OH&S lawyer is required to join one of Perth’s most notable partners and a national team of talented practitioners.

Your success will be driven by proven experience in leading complex deals with an international ﬂavour. Expert skills in multi-party transactions and outsourcing deals will see you hit the ground running. Your ability to manage key stakeholders both internally and externally will see you add value. We’re looking for a team player with a commercial mind and the drive to succeed.

You will advise leading companies on health and safety requirements, draft and implement policies to ensure compliance and educate on OH&S issues. Your wealth of experience in OH&S law and litigation will be regularly called upon as you participate in workplace investigations, deal with fatalities issues, represent employers and defend against prosecutions.

Contact Renee Turner at renee.turner@hays.com.au or 03 9604 9699.

Contact Stacey Back at stacey.back@hays.com.au or 08 9254 4598.

hays.com.au

thisweek

The Web

College of Law welcomes alumni The College of Law (COL) Alumni Association was officially launched last week by two highly esteemed lawyers. The Honourable Sir Laurence Street AC KCMG QC and lawyer and former world-champion alpine skier Zali Steggall OAM launched the association, which will give COL alumni the opportunity to renew relationships and re-engage with their professional education goals and networks. Speaking at the launch, COL chairman Joe Catanzariti commented on the COL’s progression in the last decade and Street’s contribution to its values. Govt bans Fiji Law Society meeting The decision by Fiji’s interim government to deny the Fiji Law Society permission to hold its annual convention has drawn criticism from regional legal bodies. The Law Council of Australia released a statement saying it “shares the disappointment” expressed by LawAsia, a law association for Asia and the Pacific, following the decision. Last held in 2008, the Fiji Law Society’s annual convention is a gathering of lawyers and a much-anticipated event in the legal calendar. It attracts regional and local lawyers, judges and government legal officers. No win, no fee under spotlight The Legal Services Commissioner has released a new guide outlining what he sees as the pitfalls of no win, no fee agreements. Legal Services Commissioner John Briton said that while no win, no fee cost agreements can make it easier to obtain legal representation, there are also potential pitfalls for would-be litigants. “The new guide provides practical information on how these agreements work, what costs they cover and, more importantly, what costs are not covered,” said Briton.

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Truman Hoyle chooses friends over partners TRUMAN HOYLE has chosen to pursue a “best friends” alliance rather than look for a merger partner as it pursues its growth strategy. The Sydney-based competition and technology boutique firm, whose client list includes Vodafone, Microsoft and NBN Co, has formed a “best friends” relationship with Paris-based competition law firm Vogel & Vogel. Speaking to Lawyers Weekly, managing partner Shane Barber (pictured) said his firm’s growth strategy was based on establishing close referral links with global and large national firms, rather than looking to seek a global merger partner. “As some of the new global firms have set up in Australia, many of them are still building up their service offering, and a few of them have referred particular areas of specialist work to us,” he said. “Many of the big global players are very happy to send more and more operational work to us, and we are very happy to do it, because we have a cost structure that enables us to do it, to the benefit of all parties.” Truman Hoyle had a referral arrangement with Chang, Pistilli & Simmons before it merged with Clifford Chance earlier this year. With the magic circle firm targeting high-end M&A, litigation and banking and finance work, it refers work which has a media, IP or specialist competition component to Truman Hoyle. Truman Hoyle also receives referral work from Norton Rose and Gilbert + Tobin – one of the firms Barber worked for before becoming the managing partner of Truman Hoyle in 2003. Barber said that while the arrival of global firms has provided opportunities to mid-sized and boutique firms on the back of referral arrangements, the large national firms should not necessarily be seen to be scrambling to link-up with global entrants.

“You have a lot of firms concerned that the music will stop and they will not have a dance partner,” he said. “I would suggest to law firms that they are under-estimating their attractiveness and what the Australian market will do. What it does mean is that as Australian firms, we have to ensure our market understands what we are offering, and some firms are challenged in doing that, but I don’t think we need to change everything that we are doing.” Truman Hoyle currently has 10 partners and 25 lawyers, with Barber looking to add another five partners and 10 lawyers in the short to medium term.

R E W IND Nurses in Victoria voted to take protected industrial action under the Fair Work Act to prevent changes to the ratio of nurses to patients. The row came as Opposition Leader Tony Abbot faced pressure to develop a policy alternative on industrial relations that would limit the grounds for strikes. Economic forecaster Deloitte Access Economics warned of a multi-billion dollar hole in the Government’s budget finances and urged the Commonwealth to drop its commitment to a return to surplus in 2012-13. Deloitte said a fall in house and equity prices, slower employment and weaker than expected profits were undermining tax collections. Business advisors warned that an Australian Taxation Office ruling on partnerships could hold a sting for law firms looking to incorporate. The recently finalised ruling aims to ease the tax burden of incorporation but advisors say it may subject incoming and exiting partners to tax. Tens of thousands of angry Italians gathered in Rome to call for Prime Minister Silvio Berlusconi’s resignation. Berlusconi is facing growing pressure as investors and European allies fail to accept that Italy can cut what is the eurozone’s second largest debt – a move which saw the yield on the country’s 10-year bond hit more than 6.4 per cent.

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thisweek

Corrs, Jws and blakes advise on Connecteast deal Deal name: Horizon’s acquisition of ConnectEast Group Key players: Corrs Chambers Westgarth, Johnson Winter & Slattery, Blake Dawson

Corrs Chambers Westgarth, Johnson Winter & slattery (JWs) and blake Dawson have advised on the finalisation of horizon’s $2.7 billion acquisition of Connecteast Group, the owner and operator of the eastlink tollway in melbourne. JWs advised CP2 Limited (CP2) and its transaction vehicle, horizon roads Pty Limited (horizon), while blakes advised Connecteast. The transaction is one of the largest australian targeted acquisition in the construction and building sector. horizon obtained funding for the acquisition from a diverse group of institutional investors from around the world. These institutions collectively have over $1.6 trillion in funds under management. horizon secured the approval of the Foreign Investment review board, the state of Victoria, the lenders to Connecteast, a clear 75 per cent majority of Connecteast security holders (other than CP2), and the supreme Court of Victoria. JWs acted on all legal aspects of the required regulatory approvals, with sydney corporate partner Damian reichel leading the team. “This acquisition presented particular logistical, regulatory and market challenges, including bringing together eight huge overseas institutions

from seven different jurisdictions for a direct investment in a complex public company m&a transaction during a period of intense market volatility,” said reichel. Corrs advised Uss and aTP of Denmark on all aspects of the transaction, through which horizon roads acquired the remaining 65 per cent of the securities in Connecteast that were not previously held by CP2 on behalf of Uss, aTP and other institutional investors at $0.55 per share. The Corrs team was led by corporate partners richard Lewis and steve Johns, with additional support from partner Craig milner (tax) and lawyer John Quinlan (private equity). melbourne-based corporate partner John sartori led the blakes team acting for Connecteast.

DE AL MAKERS

Phil Lucas

Richard Gordon

Joanna Pugsley

Firm

Allens Arthur Robinson (UBS), Allion Legal (Perilya Limited)

Allens Arthur Robinson (banks), Clayton Utz (Western Mallesons Stephen Jaques Australian State Solicitor’s (Perth Airport) Office)

Deal name

Accelerated entitlement offer by mining company Perilya

Financing for Perth Airport restructure

Eastern Goldfields prison project

Area

Corporate

Finance

PPP

Value

$110.5 million

$930 million

$232 million

Key players

Allion’s Phil Lucas

Allens’ Richard Gordon

Clutz’s Joanna Pugsley

Movers & Shakers

D E A L o F T HE W E E K

Minters London expands with Aussie partner Michael Wallin, an Australian corporate lawyer who is currently a partner with Mayer Brown in London, has joined Minter Ellison. Wallin is the third partner in Minters’ London office, joining Michael Whalley (corporate and capital markets) and Nigel Clark (finance). Corrs poaches Bakers partner Andrew Chew has joined Corrs Chambers Westgarth’s Sydney construction group as a partner. Formerly a partner at Baker & McKenzie, Chew specialises in major projects and is a qualified engineer and Mandarin speaker. He has experience across the infrastructure and resources fields, including in public-private partnerships, transport, mining, energy and water infrastructure projects. Cooper Grace Ward adds two Queensland firm Cooper Grace Ward has appointed Craig McIver (pictured) and Kristi Riedel to its litigation and dispute resolution team. McIver, who has been appointed special counsel, has 20 years’ experience in commercial insurance disputes. JWS takes G+T partner Johnson Winter & Slattery has poached Gilbert + Tobin partner Marko Komadina as part of a raid on three firms. JWS also lured across Michael Bywell (pictured), a dispute resolution partner with specialist IT knowledge from UK firm SJ Berwin LLP. “Michael is an experienced litigator and we have been wanting to augment the skills within our commercial dispute resolution group for some time,” said the firm’s managing partner, Peter Slattery. Andrew Williams has also joined the firm from Blake Dawson as as a special counsel.

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thisweek

Adelaide firm takes Tiger by tail

lawyer educates judges about mental illness

An AdelAide firm acting pro bono for former employees of Tiger Airways has leveraged public pressure to secure their entitlements. A group of around 10 former Tiger employees recently sought legal advice from Tindall Gask Bentley when the airline failed to deliver on promises of redundancy, notice period and annual leave payments. After pressure generated by media interest in the case, the airline apologised to the former employees and agreed to pay. “We’re pleased that Tiger Airways has finally given these young people what they are entitled to,” said Tindall Gask Bentley managing partner Morry Bailes. “The airline also softened its stance on payments for the three month notice period, which is positive. it certainly should never have gone this far; a lot of unnecessary stress and uncertainty was caused.” Bailes said Tiger is still refusing to budge on its claim that staff members who gained employment with rival airlines were no longer entitled to redundancy payments. “When the Adelaide base was shut down, employees were encouraged to look for new jobs, but after gaining employment with other airlines, they were told that they had effectively ‘resigned’ and lost their payouts,” explained Bailes.

A former Perth lawyer is leading the fight against poor outcomes in the court system experienced by those suffering from mental illness. mark Dean, a former lawyer and managing director of en masse, a melbourne-based education and training company, said there is a critical need for those working within the court system to understand how perceptions of those who are particularly vulnerable can perpetuate inequalities. en masse has partnered with the Western Australian Department of the Attorney General to develop an online training program to increase awareness within the WA Courts and Tribunal Services (CTS) Division about complex mental health issues. “our brief was to create an awareness and training curriculum that assists judges, magistrates and court officers in WA to understand more comprehensively the psychosocial issues experienced by people who have mental health issues, as well as some of the cultural and other behavioural indicators that warrant special care and attention,” said Dean.

Professor Colleen Hayward, the head of Kurongkurl Katitjin at edith Cowan University’s Centre for Indigenous education and research, also worked with en masse in the design and delivery of the program. The initiative was launched on 19 october to coincide with WA mental Health week and will be progressively made available to court staff, judges and magistrates.

China focus for bakers The AusTrAliAn practice of Baker & McKenzie is attempting to pick up more Chinese outbound work as part of a firm-wide China strategy. Australia national managing partner Chris Freeland spoke to Lawyers Weekly after attending the firm’s annual partners meeting in Beijing from 24 to 29 October. he said a particular focus of the conference was the increasing levels of outbound investment from Chinese firms. “What interested the Chinese was how much of a level playing field there is [for outbound investment] and whether Chinese companies are treated the same way as large companies from other countries ... The answer is they are.” The importance of China to the Australian and global economy is continually increasing. According to the Allen & Overy Q32011: Asia Pacific Index released last month, China is the sixth largest acquiring country, with Australia its second most popular target. The number of

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Chinese companies in the Fortune 500 leading global companies by revenue has grown from 15 in 2004 to 61 this year. it is also estimated that the proportion of global GdP emanating from China and india will increase from its current rate of 11 per cent to almost 35 per cent in 20 years. While much of the Chinesebased outbound investment in Australia has centred on energy and resources work, Freeland said the firm acted on “a reasonable amount of work” emanating from China, despite not having a dedicated office in Perth. “At times it would be an advantage to have a Perth office,” he said. “Our experience is that it hasn’t had a material impact on us, as we can still support our clients with WA work from sydney and Melbourne, which is where the crux of those deals is from a financial side, and to the extent there is a jurisdictional issue in WA, we will call on a local Perth law firm to help with that.” Freeland nominated

agribusiness and renewable energy as particular focus areas for the firm as it seeks to act on Chinese outbound work into Australia. he said the recruitment last month of the former north America general counsel of Mars, david Watson - who was also a partner at Minter ellison previously - to the firm’s sydney office represented a push to increase the firm’s capabilities on the global food and retail side. Around 700 partners from the firm’s 70 offices attended the conference, including 40 partners from Australia. spouses and clients of the firm also attended, with the program including a reception in the Great hall of the People in the Chinese Parliament.

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thisweek

A firm’s recent decision to purchase automatic time billing software, which tracks and reports on a lawyer’s daily work activities, has been criticised as going one step too far. Stephanie Quine reports

orrs Chambers Westgarth last week announced it would be implementing software, called Time Builder, heralding it as a win for lawyer efficiency and a valuable tool to help lawyers “jog their memory” when filling out a timesheet. Developed by US legal software company IntApp, Time Builder monitors the key applications lawyers actively use throughout the day. This includes email, calendar, document creation, and phone and mobile devices. The software then provides a report to lawyers in a timesheet format through Microsoft Outlook or mobile and tablet devices. This report can be manually altered. “The further you go in time from the day of filling a timesheet out, the harder it gets to be accurate, and it’s really important that [timesheets] are as accurate as they can be,” said Jon Kenton, Corrs’ chief information officer. Kenton also believes lawyers will appreciate having the software. “One of the things you hear quite often from lawyers is that they don’t like filling in timesheets … so anything we can do to help them, from an efficiency and accuracy point of view, is a good thing,” he said. “People tell me this software allows you to bill more time, but our focus is making sure we capture the right time.” But the managing partner of Sydney firm Marque Lawyers, Michael Bradley, has criticised

the software, labelling it as “beyond funny and into the field of surreal” “Who on earth could be delighted to learn that they’re going to be subjected to this? Especially anyone who calls themselves a ‘professional’. Of all the steps our profession has been taking, by progressive inches, to dehumanise lawyers over the years, this just screams out for someone to say ‘enough!’” he said. “I didn’t study law with the thought in the back of my mind that the sole measure of my value in years to come would be minutes on a timesheet. Surely nobody did. But, even accepting – as almost all lawyers do – that the best way to charge for legal services is by reference to time … it can’t have been part of anyone’s personal bargain that they would be prepared to shred their privacy, professional integrity and human dignity to this degree.” Bradley also raised questions about how exactly the software will tally up minutes spent emailing, tweeting, texting, internet surfing, typing and making diary appointments. “Will it be reporting on how many texts you sent?” asked Bradley. “What the firm chooses to do with all this data is up to it, but the data will now exist – and to the nth degree of detail … Given that the software allows for manual override of the timesheets, will clients be asking for the raw data when they want to query a bill?” Corrs is also looking to adopt other IntApp products, including Wall Builder, to enforce client confidentiality.

US/UK Update

new billing software “dehumanises” lawyers

Five firms advise on $1 billion coal deal WinsWay Coking Coal Holdings of China and Marubeni of Japan have teamed up to buy Calgary-based grande Cache Coal, reports The Am Law Daily. grande Cache is a major producer of coking coal – a key ingredient used in the production of steel – which is currently in high demand due to disruptions in the supply of australian coking coal (due to flooding). Three firms hire in BLG exodus Edwards Wildman, Hogan Lovells and snR Denton have all hired partners from Barlow Lyde & gilbert (BLg) as the firm merged with Clyde & Co last Tuesday (1 november), reports The Lawyer. Former BLg energy partner Humphrey Douglas joins snR Denton, while litigation partner Patric Mcgonigal joins Hogan Lovells’ litigation and arbitration practice in Tokyo. Edwards Wildman hired former BLg corporate partner and restructuring and insolvency head, Jon yorke, as a partner in its insurance and reinsurance team. Bermuda head disappears to London Conyers Dill & Pearman has appointed Charles Collis as head of the firm’s London office. Collis will set the strategic course for Conyers’ London operations and lead a team of lawyers with expertise in investment funds, securitisation, insurance, shipping and aircraft and islamic finance. Collis relocates to London from Conyers’ insurance practice in Bermuda. Teens take universities to High Court Two teenagers have begun a case in the high court against the Uk government’s decision to allow universities to almost treble tuition fees next year, reports The Guardian. sam Jacobs, representing the students for Public interest Lawyers of Birmingham, will argue that the decision contravenes human rights and equality laws. Their case is expected to last two days and has been funded by legal aid and pro bono.

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indepth

Getting them young National law firms have long-established links with universities in order to put themselves front and centre in the graduate recruitment market. Justin Whealing looks at how the increasingly global nature of Australia’s legal market has affected the way law firms and universities attract talent

lobal law firms have not only been trying to take clients from national firms, they have also been trying to entice the best students. The law faculties of Australian universities have had extensive links with top-tier and large law firms for many years, as well as relationships with leading international law firms. Typically, large firms would sponsor the affiliated university law societies and also put some money behind specific events, such as mooting competitions or dinners. Of course, such a strategy would ensure said firm was visible within the campuses of Australia’s universities, and help establish connections with some of the best and brightest law students in the country. Now, the global firms also want a slice of the action. Recent international arrivals such as Norton Rose, DLA Piper, Allen & Overy and Clifford Chance have joined the large national firms as sponsors of many of the university law societies. The dean of the University of NSW Law School, David Dixon, told Lawyers Weekly he has noticed how the arrival of global law firms and their presence within university associations has ramped up the war for talent from firms looking to pick up the cream of the graduate crop. “I know you hear from some firms that they are not getting as many people accepting offers from them,” he said. “Top students are going outside law firms for work as well. “I was struck by a very good graduate of ours recently going to work for a consulting firm – and turning down an offer from a top-tier firm.” Allen & Overy is a premium sponsor of the UNSW Law Society,

l aw y e r s w e e k ly 11 n o v e m b e r 2 0 11

along with five of the six top-tier firms (Blake Dawson is the exception, and is a second level major sponsor) while Clifford Chance is on the next rung down as co-sponsor, alongside fellow magic circle firm Linklaters. Leading international firms without an office in Australia – such as Linklaters, Herbert Smith and Freshfields Bruckhaus Deringer – are sponsors of many of the law societies within Australian universities. Major finance companies such as Deutsche Bank and PwC can also be found as sponsors of various university law societies. “We have had a regular relationship with a number of the big international firms, with a number of our students going on to work in London, New York, Hong Kong or Shanghai,” said Carolyn Evans, the dean of Melbourne Law School at the University of Melbourne. “That remains our major form of contact, not necessarily with the domestic branches [of the global firms], but with the major international offices that have much larger recruiting needs.” While a global firm like DLA Piper with an office in Melbourne is one of the sponsors of the University of Melbourne Law Students’ Society, firms such as Clifford Chance and Allen & Overy tend to target university law societies in Sydney and Perth, where they have offices. International law firms will also fly hit-and-run missions to Australia’s universities, visiting for a short period to sell themselves to students who might want to work for a period overseas. The University of Melbourne has an annual Hong Kong law fair where large firms with offices in Hong Kong come for the day to spruik their wares.

“i know you hear from some firms that they are not getting as many people accepting offers from them” david dixon, dEan, univErsity of nEW south WalEs laW sChool

“We have had a regular relationship with a number of the big international firms” Carolyn Evans, dEan, MElbournE laW sChool, univErsity of MElbournE

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indepth

Laughing all the way to the bank Almost half of Australian business leaders expect the cost of funding to increase, however they’re not concerned about availability. Briana Everett reports

new global report by Allen & Overy, based on the responses from 1000 business leaders from international companies across 19 countries, has revealed that 42 per cent of Australian businesses expect their need for finance to increase over the next two to three years, but only 17 per cent expect availability of funding to contract in that time. “It’s almost as if people are thinking that they’re going to have to pay more but they’re going to get it anyway,” A&O banking and finance partner Chris Robertson told Lawyers Weekly. “Where liquidity is tightening, that [17 per cent] was a little bit unusual to us, but I think it reflects an expectation that in extreme distress, the banks will roll over their loans to existing borrowers and not pull funding completely. “It probably reflects the strength of relationships between the people that were spoken to in the survey with their financiers.” According to Robertson, the funding challenge currently affecting Australian businesses is a result of strong growth combined with market conditions increasing liquidity constraints, and the regulatory challenges facing financial institutions. “This is driving organisations to look at alternate sources of funding,” he said.

Business Confidence

Those who are ‘very’ or ‘reasonably’ confident

“Whenever you limit the access to a particular type of funding source then you’re going to limit its availability. It’s almost a chicken and egg situation.” TONY SPARKS, PARTNER, A&O

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The survey revealed that Australian businesses are less inclined to use a wider variety of debt securities, with more than half preferring bank loans for their funding needs. In contrast, the survey demonstrated that global businesses are making more use of debt capital markets and high-yielding securities. Indicating that this trend will continue in the coming years, 53 per cent of Australian businesses said they were likely to increase their reliance on bank loans, compared to only 42 per cent of global businesses, over the next five years. “It’s primarily a function of the market here in Australia,” said Robertson. “Australia has never had the depth that offshore markets like the US or Europe have ... Historically, funding here, at least on the debt side, has been relatively dominated by the large domestic banks.” A&O equity capital markets partner Tony Sparks added that the Australian Securities and Investments Commission has tried to help facilitate the corporate bond market, but because of a lack of liquidity and Australia’s history, this has not yet taken off. “One of the challenges is ... ASIC is really looking for large, established corporations with good credit ratings to lead that market,” said Sparks. “Whenever you limit the access to a particular type of funding source then you’re going to limit its availability. It’s almost a chicken and egg situation.” LW

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GOLDEN OPPORTUNITIES IN THE MIDDLE EAST "For lawyers considering international opportunities, I would recommend dealing with The Marsden Group as their best option.They are leaders in this area hands down. While other recruiting firms may have postings for international jobs, my experience with the The Marsden Group was that they had by far the best insight into those international markets and direct and longstanding relationships with the firms operating there. I also felt they really hustled on my behalf, and actively started exploring opportunities as soon as I approached them about my desire to work abroad. I dealt with their agents in various jurisdictions and they all worked together to find me an excellent role aligned with my background and career objectives." Senior Corporate associate moving internationally to join Magic Circle firm in Abu Dhabi

"Marsden Group is significantly different from most legal recruitment firms that I have used. I was not pushed into seeing anyone but rather my preferences were respected. Instead of sending my CV to every law firm which was recruiting at my level, we worked on a proper strategy for weeks before my CV was finally sent out. I felt I could be honest and trust the judgment of the firms recommended to me. Once I received an offer I didn't feel under pressure to accept the offer.Their overall service is excellent. My consultant was courteous, professional, responsive and attentive. I would highly recommend Marsden." Islamic Finance associate moving from Bahrain to join Magic Circle firm in Dubai

ENERGY

FINANCE

• Dubai – Oil & Gas

• Dubai – General Banking

4-7 years – Silver Circle

3-7 years – Magic Circle

• Oman – Energy Projects 5-9 years – International Firm

• Abu Dhabi – Corporate Energy 4-6 years – Silver Circle

• Dubai – Energy/Projects 5-8 years – Silver Circle

PROJECTS/CONSTRUCTION

• Doha – General Finance 4-7 years – Magic Circle

• Dubai – Project Finance 3-6 years – Silver Circle

• Dubai – Islamic Finance 3-9 years – Magic Circle

• Abu Dhabi – Commercial

• Bahrain – Corporate/Private Equity – 5+ years – UK Firm

Projects – 3-6 years – Silver Circle

• Riyadh – M&A/Transactional

• Dubai – Projects/Construction

4-8 years – International Firm

6-8 years – Magic Circle

• Abu Dhabi – Corporate/Energy

• Abu Dhabi – Projects/ Construction – 5-8 years – Magic Circle

• Dubai – Construction Disputes 4-8 years – International Firm

CORPORATE

3-6 years – Silver Circle

• Doha – Corporate (Arabic speaking) – 3+ years – US Firm

For a confidential discussion about these and other opportunities, please contact:

Greg Plummer

Samantha Cowling

Jonathan Walmsley

greg.plummer@marsdengroup.com

samantha.cowling@marsdengroup.com

jonathan.walmsley@marsdengroup.com

02 8014 9052

02 8014 9053

02 8014 9050

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practiceprofile

In good faith The recent industrial action undertaken by Qantas and its workers was nothing short of dramatic. Briana Everett and Claire Chaffey examine what was a highly strategic use of Australia’s workplace laws.

hen the enterprise agreements governing the relationship between Qantas and its staff expired last year, few could have foreseen the drama that would ensue. Finding themselves with the power to renegotiate those agreements by virtue of the Fair Work Act, three separate unions representing the rights of their members took Qantas to task in relation to job security, employment terms and conditions, and the future of the company. Adding fuel to the fire was the fact that Qantas was obviously struggling. In the face of Open Skies agreements, which had exposed Qantas to unprecedented levels of foreign competition, off-shoring and restructuring were becoming commonplace as part of the embattled company’s survival strategy. Not surprisingly, Qantas’ workforce was not happy about it, and they began exercising their right to take industrial action – as allowed by the Act – in an attempt to secure their future. As negotiations commenced, however, it soon became clear that this was not going to be an easy dispute to resolve. Over the course of more than a year, Qantas and the unions sat through a total of 99 formal negotiation meetings and, behind the scenes, Fair Work Australia (FWA) was doing its best to forge a resolution which would not come. The dispute finally came to a head after drawn-out periods of industrial action from engineers, pilots and transport workers, and negotiations broke down entirely. Then, on Saturday 29 October, Australia witnessed something quite remarkable: the grounding of its biggest, most iconic airline.

risky business Opinions differ in regards to whether Qantas CEO

Alan Joyce’s decision to ground the airline, in an attempt to bring about the end of the industrial action, was a good one – or even necessary. According to Middletons workplace relations and safety partner Alice DeBoos, the only way in which Qantas – and its legal advisers, Freehills – could have brought the dispute to an end, and achieve the resolution it was seeking, was to make such a dramatic manoeuvre. “The action of Qantas [was] certainly a highstakes game,” she says. “It was extreme and it was very risky. But, ultimately, you need to view it in the wash up, and … they have achieved exactly the result they wanted to achieve.” This much is true. When FWA intervened in the dispute, it ordered that the dispute be terminated, rather than suspended. For the unions, this meant a definitive end to the action, with no hope of sparking future action. For Qantas, it meant that – after an additional 21 days of negotiations that will inevitably be fruitless – FWA would be forced to deliver an arbitrated decision which will be binding on both Qantas and its employees for a nominated period of time (likely three years). According to Dr Shae McCrystal, a senior lecturer at the University of Sydney, while Qantas did indeed take a gamble, the outcome was reasonably foreseeable. “What Qantas did was force FWA’s hand,” she says. “They created an effect that had so much damage that, really, FWA had no choice. Qantas wanted FWA to terminate, whereas the unions wanted them to suspend. The unions wanted to keep alive the possibility that if Qantas didn’t concede any points at the bargaining table, in three months’ time they could organise industrial action again. Qantas,

on the other hand, gambled that the arbitration imposed by FWA would benefit them. “What you can impose in a termination is limited by the Act. You can’t stop a business from restructuring. So, in that respect, it was not a big gamble.” Gamble or not, McCrystal believes Qantas did not have to take such drastic action. Under the Act, industrial action which is merely threatened, and which could, in theory, have a serious effect on the economy, is sufficient to invoke the essential services provision which allows termination of the action (and which FWA used). “Qantas could have gone to Fair Work before the lock out. They could have said, ‘We are backed into a corner. If you don’t terminate, we will shut down the airline and we will lock out our workforce. This will have an effect on the economy’,” she says. “The outcome may not have been as guaranteed, but I think they had a good chance of getting a termination on their own, without locking out, and that is where I think it was the wrong choice. They could have made the argument about economic damage without proving it. No-one is going to dispute that if you shut down an airline it is going to have this effect. They didn’t need to shut the airline down to establish that.” DeBoos disagrees: “There was no other way that they could bring about this result right now,” she says. “It would have been hard for Qantas to argue that [the industrial action] was causing the requisite level of … economic harm. But if you ground all your planes all across the world, and the government steps in, then you certainly do have that enormous impact on a section of the economy, which is what they needed to prove – and they did.”

The Qantas dispute by numbers:

The number of formal negotiation meetings held between Qantas and its staff since May 2010

The day in October 2011 when FWA terminated the dispute

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The number of days FWA gave parties to come up with an agreement following termination

1993

The year in which the right to strike deemed lawful

$20M

the estimated loss made by Qantas each day of the grounding

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opinion

Grabbing the grads The competition for young talent is hotter than ever. Recruitment specialist Sue-Ella McDowall lists the dos and don’ts of a graduate recruitment campaign Gen Y graduates are harder to reach and, frankly, more sceptical than any previous generation. They do not always emerge from tertiary studies ready for the culture of a typical law firm. Global firms such as Clifford Chance and Allen & Overy are landing on Australian shores and will become a magnet for top talent. These firms obviously need to get hold of bright young minds quickly – and in quantity. They will invest to recruit strongly as they build local momentum. It is soon about to be harder than ever to attract great talent, especially for mid-tier and smaller private firms. Attracting and recruiting the finest of Gen Y – grads with spark and passion, as well as intellectual horsepower – requires a shift in your approach, and that shift in approach is getting urgent.

why is graduate recruitment important?

o you find it a challenge to find the right graduates for your practice? If you do, you’re not alone. More than ever, Australia’s law firms are dependent on great talent to retain and grow their business. However, graduate recruitment is becoming a challenge as fewer law graduates are choosing to start work with a ‘practice’, preferring instead the perceived benefits of an inhouse role – or even entering general commerce.

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Without the right grad recruits, the burden on your senior team is unsustainable. Grads do the grunt-work for the firm in return for the experience they need to develop their careers. With the best recruits, you also have access to a powerhouse of fresh energy and thinking, and innovative solutions to problems. For example, we recently heard about a graduate with a mid-tier Sydney firm who singlehandedly found a loophole in legislation – a discovery that turned the matter on its head, in favour of his firm. That’s powerful graduate hiring at work, right there. But Gen Y has grown up in the digital era, and smart legal firms are taking great care to ensure they put together the most compelling recruitment propositions.

Generation y is a different breed of graduate Gen Y – born after 1982 and before 2000 – is the generation that’s grown up with digital technology. They also came of age during a time of unprecedented economic growth and prosperity in Australia. Many commentators see

this as an important cultural influence on their approach to work. But are Gen Y candidates really different to, say, Gen X candidates? Well, in the fundamental human sense, of course not. But when it comes to questions of recruitment, then yes, we feel that when communicating with Gen Y you need to approach your campaign differently. Make no mistake: Gen Y has a lot to offer – perhaps more than any previous crop of graduates – but your recruitment communication does require careful handling for your campaign to work. So, let’s now turn to look at some of the things you should consider when putting together your graduate campaign. Answer the golden question: “Why should I choose you?” If you don’t have an answer to this, you won’t have a compelling employer brand. It’s the most important question for your candidate, and if your campaign doesn’t answer this question, you will not attract the talent you need. It’s important that your firm has chosen a single, compelling advantage, and that it’s relevant to graduates. What’s your single reason? If you could find one single word, what would it be?

build emotional gravity Rational communication is important, but real attraction comes when your communication makes you feel something. What do you want your target Gen Y to feel about your company? What should they expect to feel when they join your firm? If you need to, just pick any emotion and make sure you communicate that in your recruitment. The emotion could be fun, optimism, eagerness, confidence, charm – it really doesn’t matter, as long as it is consistent with your firm. A recruitment campaign without soul simply does not appeal to Gen Y.

Pitch the short-term benefits Promises of future corner-office glory and business class travel are not as important to

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opinion

Use their media, not yours

Gen Y as your immediate plans for their success. They are wondering what you are going to do for them next week. Mentoring, training and accessible reward for effort are highly desired by these candidates. Remember, the real benefit of working in your firm is almost always laced with emotion and very rarely just the salary and bonus numbers. Gen Y is looking for a package with “softer” benefits – things like accessibility, friendship, teamwork, recreation time and more.

Show you are a modern firm Traditional corporate images of handshakes and boardrooms – with smiling senior people in suits – will not impress Gen Y. Your communication tone must speak to them as equals, or they will switch off. Fast. It is vital that you show the grad that you are a friendly workplace – that you support reasonable working hours and, later, families. You’ll also need to make sure you are seen as truly equal opportunity. With so many female legal graduates, this is vital; and evidence of success and progress is more important than ever. In addition, graduates are looking carefully for policies they see as essential for a modern firm – policies on the firm’s approach corporate A D _ Lto WL E X 2 Nsocial O V 1 responsibility 1 _ 1 1 . p dand f employee Pa ge 1 diversity are two important examples.

Traditional corporate images of handshakes and boardrooms – with smiling senior people in suits – will not impress Gen Y” SUE-ELLA MCDOWALL, MANAGING DIRECTOR, MCDOWALL

2 / 1 1 / 1 1 ,

It’s important for all branded communications to be consistent (and to reflect the values of your employer brand). Don’t make the mistake of assuming Gen Y is aware of your advertising campaign (especially if it uses traditional media and appears in newspapers!). It’s a busy digital world out there. Is the campaign in the right places to meet Gen Y, including online, mobile, direct, events and careers fairs, and not daily newspapers? If you’re not using social media in your campaign, you may as well hang a big sign saying, “Old-fashioned firm here”. You will also miss out on the tremendous “viral” effect of your firm’s proposition being spread by Gen Y themselves, creating a word-of-mouth vortex that money can’t buy.

Show the real culture of the firm Culture is important to Gen Y. But any attempt to gild the lily when it comes to your corporate culture will end up working against you (because they will notice, and spread the word via social media). To make your firm attractive, it’s much more important to find aspects of your culture that are real, and reflect these in your campaign. LW

1 1 : 0 3 Sue-Ella A M McDowall is managing director of Sydney-based

creative agency McDowall

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L AW Y E R S W E E K LY 11 N O V E M B E R 2 0 11

mainstory

Once bitten, twice shy

L AW Y E R S W E E K LY 11 N O V E M B E R 2 0 11

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mainstory

As the European debt crisis reaches a tipping point and the United States struggles to avoid recession, the Australian legal recruitment market is treading carefully. But as Briana Everett finds out, law firms are still on the hunt for talent

ne the eve of the 2011 G20 Leaders’ Summit in Cannes this month, Greek Prime Minister George Papandreou shocked Eurozone leaders with his surprise announcement he would hold a referendum on the country’s €130 billion ($173 billion) bailout deal. Causing anger amongst world leaders, including the G20 summit host, French president Nicolas Sarkozy, Papandreou’s drastic move – and his subsequent decision to step down – once again threw into doubt the likelihood the debt crisis will be contained any time soon, cultivating fears that the world could soon plunge into another financial crisis. With mounting fears that the current debt crisis could get even uglier, Australia’s Minister for Foreign Affairs, Kevin Rudd, conceded that Australia is not immune to the market turmoil in Europe, telling a CHOGM press conference on 25 October that the European debt crisis could have major global repercussions from which few economies would be immune, and that Australia awaits the outcome with “keen interest”. “What happens in Europe in the financial markets and the stability of those markets affects Australia,” he said. “It affects Asia, it affects the rest of the world, including Africa, Latin America and all the countries represented here at this Commonwealth Forum.” While Australia’s resilience to global economic volatility has been emphasised by Australian leaders, including Rudd,

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mainstory

“Firms will focus on those roles that are urgent ... Firms are being cautious because it’s the old ‘once bitten, twice shy’,” says Peacock. “But, at the same time, there’s not going to be this huge knee-jerk reaction in law firms, unlike accountancy firms like KPMG and Deloitte.” Comparing today’s legal market to the pre-global financial crisis market, Peacock says Australian law firms are now better managed, leaving them better equipped to deal with what the global market may throw at them in the next few months. “In the countries where there were a lot of redundancies, [firms/companies] have had to go out and spend a lot of money in rehiring people. So I think, to the extent there is any downturn, people will get moved around internally a bit more this time,” he says. “Law firms will be wary of having a sudden upturn in work and not having the lawyers to do the work. When lawyers are ultra busy doing two or three people’s work, it tends to lead to fairly unsettled lawyers, and that’s when you get [lawyers] looking around the market.”

The hunt for rare talent Although Australian law firms are recruiting conservatively, in certain practice areas there is huge demand for more lawyers – particularly in Perth and Brisbane, which continue to be Australia’s legal hotspots. As the end of 2011 quickly approaches – and despite the usual slowdown in activity as Christmas nears – private practice lawyers in the banking and finance space and, of course, the energy and resources area, are in high demand. Additionally, firms are also on the lookout for insurance, employment and construction lawyers. “Despite what’s been happening, we’ve got quite a lot of activity in banking and finance,” says Bermheden. “We’ve got vacancies in Sydney and Brisbane … Project finance is obviously a big area especially when you’re looking at Perth. Every single vacancy there has a focus on energy and resources.” Equally, for Taylor Root manager Matt Harris, there are not nearly enough banking and finance lawyers to go around. “There has been an awful lot of recruitment. The busiest area for us [is banking and finance]. If we could find 100 banking lawyers,” says Harris. “Banking and project finance are really, really busy. That has to be because people are confident so, for the moment, it’s good.” In contrast, Taylor Root manager Brian Rollo says the market for in-house lawyers in the banking and finance space is “dead”. Citing a lack of headcount approval amongst corporations because of the current global market uncertainty, Rollo says there have been few in-house

Banking and project finance are really, really busy. That has to be because people are confident so, for the moment, it’s good MATT HARRIS, MANAGER, TAYLOR ROOT

transactional roles available this year. “Banks and corporates that hire transactional lawyers haven’t got any headcount approval because of overseas issues. So they’ve been massively impacted by what’s happening in Europe,” he says. “Law firms are hiring loads of finance lawyers, which obviously indicates that the work is there to be done, but there’s no headcount approval.” “Other sectors, like energy and resources, construction, media and professional services, have all been reasonably busy,” he says. “[We’ve] had quite a lot of senior work mainly in construction and energy and resources. There have also been a fair few financial services regulatory roles. That’s what’s kept us busy for the year.” As a result of market uncertainty and the associated limit on headcounts, Rollo says he has also noticed an increase in contract roles for in-house lawyers in the last couple of months as corporations aim to finish outstanding projects. “The longer the global uncertainty drags on, the more corporates are worried about adding additional headcounts,” he says. However, while law firms and some corporate sectors are demanding more lawyers, Australia’s legal recruitment market remains short of candidates, leaving few lawyers for firms to choose from, thus exacerbating an already sluggish hiring process as firms remain cautious during the recruitment process. While there are candidates on the market, recruiters say lawyers are also being cautious when it comes to making a move. “There are lots of jobs, but not as many quality candidates in the market,” says Marsden director Greg Plummer, adding that some law firms are now looking at foreign-qualified lawyers. “The quality just doesn’t seem to be in the Australian market. [Lawyers] at that three to six-year level seem like they’re staying put. Maybe they’re waiting for the overseas markets to get a bit better and biding their time, but some of them could be taking advantage of all these opportunities. “If you’re a good quality lawyer and you’re at the right level then you’ve got options.” Observing the high demand for lawyers in Perth despite the market uncertainty overseas, Naiman Clarke international consultant Liza Davenport notes the struggle

There are lots of jobs but not as many quality candidates in the market” GREG PLUMMER, DIRECTOR, MARSDEN

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mainstory

Where lawyers are looking

Banks and corporates that hire transactional lawyers haven’t got any headcount approval because of overseas issues. So they’ve been massively impacted by what’s happening in Europe” BRIAN ROLLO, MANAGER, TAYLOR ROOT

of Perth-based firms to find the talent they need. “In Perth, firms don’t have access to all the lawyers they want,” she says. “They should focus on bringing in a lot of lawyers from outside of Perth.” Similarly, Harris says Perth and Brisbane firms are now recruiting a number of energy and resources lawyers from Scotland, northern England and from firms outside of London as a result of this struggle. “I don’t remember [Australian firms] being quite so open to lawyers from firms outside of the traditional Londonbased magic circle firms,” he says. And, he adds, salaries are looking good. “Sign-on bonuses are still relatively rare but salaries are excellent,” he says. “Obviously, the traditional firms that pay very well still are, but some of the offers that are coming from top-tier firms are really great.” Due to the shortage of top talent, while firms are being conservative, Peacock adds that if a firm finds the right candidate, they will move quickly to secure them. “Where there are good candidates, firms will move fast and I have seen some instances where firms have been offering sign-on bonuses,” says Peacock. “I wouldn’t say it’s hugely prevalent but I have seen that in the last 12 months.”

Citing global uncertainty and the fact that Christmas is approaching, recruiters suggest lawyers might be staying put as they monitor overseas markets and consider their international options. And while a lot of lawyers are not actively looking, Bermheden says many are interested in hearing about opportunities which could provide them with more room for career progression and increased job satisfaction. “I’m approaching lawyers, speaking to them about vacancies, and they are very willing to listen because I think they realise there are opportunities out there,” she says. “We still have a large number of candidates that are actively looking [and that is because] of location. Especially if they’re in corporate and they really want to focus on energy and resources, some lawyers are looking at options in Perth and Brisbane.” Australian lawyers are also continuing to consider opportunities in the Asia Pacific region, with many looking to make a move. “We’re getting lots of lawyers wanting to make a move to Hong Kong or Singapore,” says Paluch. “Unfortunately for a lot of Australian lawyers at the moment, not only is there a degree of caution being exercised by law firms over there, but language (Cantonese or Mandarin) has once again become very important.” For Davenport, the European debt crisis has not slowed things down in Asia, and she has a constant flow of Australian candidates wanting to move to Hong Kong or Singapore. “I’m really busy in Hong Kong right now,” she says. “The corporate mergers and acquisitions teams and the corporate capital markets teams are needing lawyers … We have just started looking at Singapore as well … There’s a lot of hiring going on there.”

What to expect Highlighting the degree of caution currently amongst firms, most recruiters are relatively positive about what’s to come and expect the market to remain stable – at least in the short term. “There’s more positivity in the market. It just feels much better than it did six months ago,” says Plummer. “Lawyers are much more realistic about what their prospects are and some are just willing to sit and wait … There are jobs and the market appears to be relatively stable.” While not predicting a massive upturn, Peacock expects recruitment activity to continue. “I think it will be relatively stable … I think it’s just going to plod along and stay stable. It will probably slow down between now and Christmas but pick up again slightly before the end of January.” LW

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career

counsel

Time for a lateral move Although there are plenty of career opportunities available for Australian lawyers, writes Greg Plummer, they’re failing to make the most of them. There are exciting opportunities for lawyers in australia across a range of practice areas at the moment. however, the challenge faced by the majority of law firms is a general lack of good quality lawyers in the market to fill these roles. Most of the roles currently available are for mid-senior level lawyers at top and mid-tier firms with busy practices. however, lawyers are taking a cautious approach and are not, generally speaking, taking advantage of some great opportunities to advance their career by making a lateral move. One way in which lawyers can effectively

advance their career is to move interstate to position themselves better for promotion, whether from lawyer to senior associate or from senior associate to partner. There is no doubt that certain states are faring better than others in terms of economic growth. Such growth usually means law firm growth, which usually means prospects for promotion. Lawyers with the flexibility to move around australia will be tomorrow’s candidates for promotion. There is a lot of lateral movement interstate where lawyers are looking for the next step.

Guiding the way

19 % 51 % Source: LinkedIn survey, 25 October 2011

my of US female professionals surveyed said they have never had a mentor, with over half citing a lack of appropriate people as the reason

of Gen Y women surveyed said they are being or have been mentored by women, while only 34 per cent of Boomers are being or have been mentored by women

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There are some great “career roles” across the country at the moment and, in a climate where partnership is not just about being a brilliant lawyer but being in the right place at the right time, career positioning is key for the ambitious lawyer. Now is a great time to assess where you are and where you are going. Greg Plummer is a director at Marsden Legal Search & Recruitment

next move

Andrew Taylor, private practice consultant, Naiman Clarke

Q A

How much am I worth?

It is imperative, as a legal recruiter, that we are provided with a candidate’s current salary and, of course, their salary expectations. The question, ‘How how much are you currently earning?’ expectedly yields a variety of different responses. For every candidate grossly underpaid, there is bound to be one that is overpaid. The next question, ‘What are your salary expectations?’ is never answered quickly. There is often a fairly lengthy pause followed by the response, ‘I was hoping you could help me with that’. Unfortunately, there is no quick formula to calculate expectations. From experience, there is a number of variables that come into play from the clients’ perspective that will dictate how much a candidate is worth. Obvious factors include years of post-admission experience; relevant exposure to the particular area of law; and

the tier of firm the candidate is coming from. Less striking reasons include time out of the workforce; several job changes in a relatively short period of time; and change of jurisdiction. The general rule of thumb that candidates try to adhere to is that they will move for a 10 per cent increase on top of their current salary. However, if you are being underpaid, a 10 per cent increase may still leave you disappointed. Moreover, if your remuneration is generous, a 10 per cent rise on top of what you are currently earning may make you too expensive for a potential employer. So what should you do? Be flexible, without being overly malleable. If your response to the question of salary expectation in a job interview is ‘market rate’, then you need to be prepared to justify why you are in line with the market. Often we advise candidates to have a figure in mind that would be the lowest they would happily move for. This ensures that neither the candidate’s nor the client’s time is wasted. w w w.law yersweekly.com.au

folk

R E A D T H E L AT E S T FOLKLAW ONLINE

law

www.lawyersweekly.com.au/folklaw

Defendant stabs one lawyer too many AN ACCUSED killer has been ordered to represent himself after stabbing three consecutive lawyers in the neck with various writing implements. Joshua Monson, a 27-year-old American accused of shooting someone dead, is now on his lonesome after a judge ruled he has now stabbed one lawyer too many and no longer has the right to legal representation. In May this year, the Weekly Vice reported that Monson had to be restrained at his court hearing after he allegedly stabbed his lawyer in the neck with a pencil earlier in the week. Needless to say, the unfortunate lawyer stood down from the case and was promptly replaced by another - who soon found himself dangling from the tip of Monson’s pencil. Monson had apparently managed to smuggle the offending pencils into court from his jail cell, though neither were able to inflict serious injury. When Monson next appeared in court, his wrists and arms were strapped to a restraining chair and there were no Faber Castells in sight. However, after a stabbing-free session, the court apparently relaxed a little and Monson attended court this week unrestrained. That was a bad move. As Lowering the Bar reports, he managed to stab his third lawyer, this time with a pen. The judge had previously ordered that Monson be deprived of all writing tools, though the complacent new lawyer on the block unfortunately left a pen within tantalizingly close reach of Monson.

Monson really took time to prepare for his court appearances

Needless to say, Monson couldn’t resist and was soon lunging for his lawyer’s neck, biro in hand. Luckily, he missed, and the lawyer sustained a mere doodle on the side of his head. Chances are Monson’s aim was foiled by the electric shock he received from the stun device he was wearing which was triggered as soon as the guard saw Monson lunging for the jugular. Alas, the judge ruled that Monson has now forfeited his right to legal counsel. He’ll also be strapped to a chair for the remainder of the trial. Monson promptly complained, asking, “How can [the jury] fairly judge me when they see me in a chair like this?” Given that the jury had just seen him attack his lawyer with a biro, the judge didn’t seem too concerned about this point. But just to be fair, the judge gave the jury the following instructions: “Disregard the restraints ... the incident involving [the] pen, and the defence attorney’s sudden absence”. Good luck to you Monson. Folklaw doesn’t like your chances.

Lawyers behave badly on Halloween Even this bloke has better taste than Steven J. Baum’s lawyers

LAWYERS FROM an American firm that deals with home foreclosures have been caught out mocking homeless people in a Halloween prank. The New York Times reports that on the eve of this year’s Halloween festivities in the USA, it was sent pictures of last year’s shindig held by the firm

Steven J. Baum. The firm is commonly referred to as the “foreclosure mill” as it acts for big banks such as the Bank of America and JP Morgan when they seek to foreclose on struggling homeowners -- something that would have kept them pretty busy over the last few years. In pictures published by The New York Times, staff from the firm are seen dressing up to look like they are homeless, with one woman lying under a blanket with a dirty face and holding up a sign that reads “3rd party squatter. I lost my home and I was never served”. Not funny and definitely not a good look. To be fair to the firm, the person who sent the pics is a former employee. However, those pictures are fairly damning and include a picture of a coffin that reads, “Rest

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in Peace. Crazy Suzie”, in reference to class action lawyer Susan Chana Lask, who has filed a suit against the firm. The anonymous source said that such pictures demonstrate “a really cavalier attitude at the firm”, which she described as lacking compassion in its business dealings. “It doesn’t matter that people are going to lose their homes,” said the source. When the newspaper asked the firm if it mocks people who have lost their homes, the firm responded that “nothing could be further from the truth”. While Folklaw ’s natural inclination is to tell the unfunny lawyers to stick to their day job, it is not so sure that the firm is even qualified to do that with any degree of professionalism, based on the pictures of its lawyers at play.

Criminals take lawyers to court THE SUPREME Court of the United States has heard arguments from a convicted criminal who says he ended up in a far worse position than he would have been because of dodgy advice from his lawyer. The New York Times reports that Anthony Cooper pleaded not guilty to assault with intent to murder – despite the fact he shot a woman four times – because his lawyer told him to. His overly-confident lawyer, Brian McClain, said conviction was “impossible” because the bullets had struck the woman below her waist (McClain has obviously watched one too many episodes of CSI). He persuaded Cooper to turn down an offer of four to seven years in the slammer. Unfortunately, Cooper took the advice and will now be staring at the ceiling of his prison cell for the next 15 to 30 years. The Supreme Court’s Justice Breyer said there may be some circumstances in which concerns about fairness required courts to order that earlier and more favourable plea offers be reinstituted. In Cooper’s case, he wondered what should happen if a defendant copped a 50-year sentence after initially rejecting a two-year plea deal, especially where “the misbehavior of the lawyer is crystal clear”. However, Justice Scalia concluded that trying to solve the problem would leave the courts “in the soup”, because Cooper had, after all, received a fair trial. And, as Justice Kennedy pointed out, challenging this would just not be cricket. “You are saying it was unfair to have a fair trial?” he asked Cooper’s lawyer. Touché. If only Cooper hadn’t listened to his lawyer, he might have still had hair upon release

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Expect the market leader to know the market No-one knows the legal job market better than Taylor Root. After all, we’ve been leading the way in specialist legal recruitment for more than 20 years. And with offices in Europe, the Middle East, South East Asia and Australia, we can advise on the widest range of opportunities across global firms, niche practices and in-house. So whether you’re recruiting legal talent or looking for your next career move, talk to the experts. Contact our Sydney office on +61 (0)2 9236 9000 or our Melbourne office on +61 (0)3 8610 8400 or visit taylorroot.com.au

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